America’s Car-Mart to Acquire Texas Auto Center
May 02 2024 - 10:00AM
America’s Car-Mart, Inc. (NASDAQ:CRMT), today announced that it has
entered into a definitive agreement to purchase the dealership
assets of Texas Auto Center (“TAC”). The transaction, which
excludes legacy finance receivables, is expected to close in the
first quarter of Car-Mart’s 2025 fiscal year, which begins May 1,
2024.
Since founding Texas Auto Center in 1995, Bob
and Erika Blankenship have grown their operation into an
award-winning dealership group with locations in Austin and San
Marcos, Texas.
“The acquisition of Texas Auto Center furthers
our commitment to acquisitions being a part of our growth strategy.
This acquisition will deliver exceptional outcomes for our
customers, associates, and shareholders. TAC’s high-performance
culture, customer focus, and strong alignment of values makes it a
fantastic addition to what is an already great team,” said Douglas
Campbell, President and Chief Executive Officer. “Bob and Erika are
highly respected industry veterans with decades of experience
delivering quality used vehicles and excellent service to their
customers. We are excited to welcome them, and the entire Texas
Auto Center team, to America’s Car-Mart.”
“We are very excited to enter into this
relationship,” said Bob Blankenship. “My wife, Erika, and I have
devoted nearly thirty years to building our business and have been
honored to forge relationships with our customers. With the help of
our dedicated associates, we have grown to two large dealerships,
proudly serving the Austin metro area.”
“America’s Car-Mart operates with integrity,
respect, and compassion, making it the perfect fit for us,” Mr.
Blankenship explained. “Together, we share a mission to earn repeat
business by providing quality vehicles, stress-free financing, and
excellent customer service. We are committed to the success of this
transaction and to satisfying the car-buying and account servicing
needs of our customers for generations to come.”
“This agreement reinforces our commitment to
acquisitions as a part of our growth strategy that will not only
strengthen America’s Car-Mart, but the entire industry. This
acquisition expands and strengthens our footprint in the Texas
market,” said Vickie Judy, Chief Financial Officer. “We will
continue to partner with experienced owner-operators to transition
their businesses in a way that creates value for their customers
and future growth opportunities for their associates as well as
being accretive to our revenue.”
About America's Car-Mart
America’s Car-Mart operates automotive
dealerships in twelve states and is one of the largest publicly
held automotive retailers in the United States focused exclusively
on the “Integrated Auto Sales and Finance” segment of the used car
market. The Company emphasizes superior customer service and the
building of strong personal relationships with its customers. The
Company operates its dealerships primarily in smaller cities
throughout the South-Central United States, selling quality used
vehicles and providing financing for substantially all of its
customers. For more information about America’s Car-Mart, including
investor presentations, please visit our website
at www.car-mart.com.
This press release contains “forward-looking
statements” within the meaning of the Private Securities Litigation
Reform Act of 1995. These forward-looking statements address
the Company’s future objectives, plans and goals, as well as the
Company’s intent, beliefs and current expectations regarding future
growth and operating performance, including with respect to the
Company’s acquisition of Texas Auto Center and other potential
future acquisition opportunities, and can generally be identified
by words such as “may,” “will,” “should,” “could, “believe,”
“expect,” “anticipate,” “intend,” “plan,” “foresee,” and other
similar words or phrases. These forward-looking statements are
based on the Company’s current estimates and assumptions and
involve various risks and uncertainties. As a result, you are
cautioned that these forward-looking statements are not guarantees
of future performance and that actual results could differ
materially from those projected in these forward-looking
statements. Factors that may cause actual results to differ
materially from the Company’s projections include, but are not
limited to:
- the ability to
successfully identify and complete new acquisitions on conditions
that are favorable to the Company;
- the possibility
that an acquisition does not close when expected or at all
because required conditions to closing are not received or
satisfied on a timely basis or at all;
- the risk that
the benefits from a transaction may not be fully realized or
may take longer to realize than expected, including as a result of
changes in general economic and market conditions, consumer finance
laws and regulations, and the degree of competition in the
geographic and business areas in which the Company and the
acquired business operate;
- the ability to
promptly and effectively integrate the businesses of the Company
and the acquired company;
- the reaction to
the transaction of the companies’ customers, associates and
counterparties; and diversion of management time on
acquisition-related issues.
Additionally, risks and uncertainties that may
affect future results include those described from time to time in
the Company’s SEC filings. The Company undertakes no obligation to
update or revise any forward-looking statements, whether as a
result of new information, future events or otherwise. You are
cautioned not to place undue reliance on these forward-looking
statements, which speak only as of the dates on which they are
made.
Contacts: Vickie Judy, CFO at (479)
464-9944Investor_relations@car-mart.com
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