As hot as those fireworks that will explode during the upcoming Fourth of July weekend is dealership M&A activity since two more transactions became public knowledge on Wednesday.
Beginning with the McGovern Automotive Group, the New England franchised store operator announced its 20th dealership acquisition during the past five years. Now part of the group is Lundgren CDJR: Chrysler Dodge Jeep RAM in Greenfield, Mass.
McGovern has experienced significant growth to achieve revenues near $2 billion, employing more than 1,100 people and selling more than 27,000 vehicles per year across Massachusetts, New Hampshire and New York.
The group’s diverse portfolio spans luxury brands such as Ferrari, Porsche, Maserati, BMW, Audi, as well as other badges such as Subaru, Chevrolet, Toyota, Ford, and Hyundai.
“I started McGovern Automotive Group to build the best auto dealership group in the business with my own hands, without any bureaucratic influences from outside investors,” chief executive officer and founder Matt McGovern said in a news release. “I knew the most important action item was to recruit the most talented management team, which I quickly assembled from the many loyal relationships I cultivated during my 20+ years in the automotive sector.
“It is so enjoyable for me personally to work every day with a group of people that are all fully aligned with our mission,” McGovern continued. “Our employees are hands-down our biggest asset, and the success we’ve had is testament to their hard work, commitment, and determination to be the best in the business; always going the extra mile to deliver value for customers.”
Illinois Ford store gains new ownership
CliftonLarsonAllen (CLA), one of the leading professional service firms in the United States, announced on Wednesday that it helped the Rehkemper family find a new owner for its Tri Ford dealership in Highland, Ill.
The store now it is part of the Lou Fusz Automotive Network, which is based in St. Louis.
Started in 1968 by David Rehkemper, Ed Moenster, and Clinton Rogier, Tri Ford became one of the largest businesses in Highland, which is less than an hour away from St. Louis. By 2006, Rehkemper had become the sole proprietor of Tri Ford.
After his passing in 2010, Monica Rehkemper stepped into the role of sole owner-operator, and along with her son Eric, continued to build the dealership operation.
After operating the dealership for more than a decade, Monica Rehkemper eventually decided it was time to move on to the next chapter of her life.
“The sale of our store brings many emotions as we have been rooted here for over 50 years, but I am thrilled with the outcome,” she said in the news release. “I know the Fusz family will continue to provide members of the Tri Ford community with great care and service. I also know they look forward to affording our great team at Tri Ford opportunities for success and growth in the future.”
Ben Axelrod is the head of the investment banking practice at CLA, which mentioned the firm had conversations with numerous prospective buyers, including detailed discussions with several high-quality groups, before the deal come together with the Lou Fusz Automotive Network.
“It was a pleasure to work with Monica and help her achieve these retirement objectives,” Axelrod said. “We knew it was important to Monica to not only find a strong operator who would continue to build on what Dave, Monica, and Eric have built, but also somebody who has a fantastic reputation in the community and the close-knit dealership ecosystem in the area.
“With the Fusz organization, we found a highly experienced, professional team set on curating their expansion in the greater St. Louis area and the state of Illinois Axelrod continued. “Lou Fusz Automotive was a great fit for Monica and Eric’s objectives and we wish the team at Lou Fusz Ford of Highland success in the next chapter of this dealership.”