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AutoNation Acquires 2 Dealerships in Colorado to Expand Footprint
ANAutoNation(AN) ZACKS·2025-04-04 14:30

Group 1: Acquisition Details - AutoNation, Inc. completed the acquisition of Groove Ford and Groove Mazda dealerships, effective March 31, 2025, rebranding them as AutoNation Ford Arapahoe and AutoNation Mazda Arapahoe, with nearly 5,000 vehicles sold in 2024 generating approximately 219millioninannualrevenues[1][2]−TheacquisitionexpandsAutoNation′spresenceinColoradotoatotalof13Domestic,sixImport,andthreeAutoNationUSAdealerships,primarilyinthegreaterDenverarea[2]Group2:StrategicAlignment−TheacquisitionsalignwithAutoNation′sstrategyofstrengtheningitsfootprintinexistingmarkets,allowingthecompanytoleverageoperationalefficienciesandenhanceperformance[3]−Strategicacquisitions,includingthoseofPriority1AutomotiveandPeacockAutomotive′s11dealerships,haveboostedAutoNation′sannualizedrevenues[4]Group3:FinancialPerformance−TheacquisitionoffourdealershipsfromMorelandAutoGroupandRepairSmithhasfueledAutoNation′sannualrevenues,withreportedrevenuesof219 million in annual revenues [1][2] - The acquisition expands AutoNation's presence in Colorado to a total of 13 Domestic, six Import, and three AutoNation USA dealerships, primarily in the greater Denver area [2] Group 2: Strategic Alignment - The acquisitions align with AutoNation's strategy of strengthening its footprint in existing markets, allowing the company to leverage operational efficiencies and enhance performance [3] - Strategic acquisitions, including those of Priority 1 Automotive and Peacock Automotive's 11 dealerships, have boosted AutoNation's annualized revenues [4] Group 3: Financial Performance - The acquisition of four dealerships from Moreland Auto Group and RepairSmith has fueled AutoNation's annual revenues, with reported revenues of 7.21 billion in Q4 2024, up from $6.77 billion in Q4 2023 [5]