Haig Partners LLC, a leading buy-sell advisory firm to auto, heavy truck and RV dealers in the US, served as the exclusive sell-side advisor to Foundation Automotive Corp. (“Foundation Automotive”) on its sale of Chevrolet of Mandan and Subaru of Mandan to Eide Automotive Group, led by Jesse Peterson.
Foundation Automotive operates over 20 dealerships in Colorado, Texas and Tennessee. The company is not divesting its entire portfolio, but rather strategically reallocating capital and resources to focus on its core markets, similar to what other large dealership groups do from time to time. This sale represented an attractive opportunity for Foundation Automotive to take advantage of market conditions by divesting high-performing dealerships in non-core markets.
Kevin Kutschinski, President and CEO of Foundation Automotive, shared, "We have enjoyed serving customers in the Mandan area and are proud of the significant investments we made here, including the renovation of our Chevrolet facility and the construction of a brand-new Subaru dealership. This was a very difficult decision, but ultimately, we felt the time was right and that these dealerships and our associates would flourish even more with local ownership. We wish Jesse Peterson and the rest of the Eide Automotive Group continued success in this market. I also want to thank Mike Toth and Matt DeSantis of Haig Partners for their expert guidance in completing this transaction. Having seen their exceptional work when showing us acquisition opportunities, I knew I wanted experienced advisors to help navigate the complexities of these divestitures."
Mike McMeeken, Foundation Automotive’s Vice President of Corporate Development, added, “We are pleased to have successfully completed this transaction and shift our focus to growing our core markets. Jesse Peterson and the Eide team were extremely professional and collaborative throughout the process, and we wish them continued success in the exciting next chapter.”
Eide Automotive Group owns eight dealerships across North Dakota and Minnesota. Jesse Peterson, President of Eide Automotive Group, shared, "We are thrilled to expand our presence in Mandan and to represent both Chevrolet and Subaru in this dynamic market. Strengthening our regional footprint is a key component of our growth strategy, and this acquisition allows us to better serve consumers in the Bismarck-Mandan area. I would also like to thank the Foundation Automotive team, who were exceptional to work with. I wish them luck as they continue to grow their business in other markets."
Mike Toth, Managing Director with Haig Partners, remarked, "Assisting Foundation Automotive with the divestiture of these dealerships was a privilege. These are strong businesses in a unique market, but they were no longer aligned with Foundation Automotive’s long-term strategy. We identified a strong counterparty in Eide Automotive Group and guide the transaction to a successful closing despite its complexities.
"This transaction highlights the enduring demand for auto dealerships nationwide, even in smaller markets. While profits are normalizing across the industry, buyers remain confident in the sector’s strength and the attractive returns it offers. At Haig Partners, we have had the honor of representing the owners of 57 dealerships so far in 2024, achieving record-setting valuations for BMW, Honda and Kia franchises, among others, marking both a record year for our firm and our 10th anniversary as trusted advisors to dealership owners nationwide."
Sarah Seedig of Holland & Knight provided legal counsel for Foundation Automotive.
The team at Haig Partners has played a pivotal role in the sale or purchase of more than 80 dealerships across the Midwest region and remains committed to maximizing value for their clients. For more information about market conditions or to discuss a confidential sale of your dealership(s), please contact Mike Toth at mike@haigpartners.com or (561) 302-1413.
