AutoNation said Wednesday it will buy the Waco-based Allen Samuels Auto Group, which operates three dealerships in Tarrant County.
The company’s 12 Texas stores have annual revenues of roughly $800 million and sold about 19,500 new and used vehicles on a retail level last year, Fort Lauderdale-based AutoNation said Wednesday.
The outlets, which mainly sell Chrysler-related products, are located in Houston, Dallas-Fort Worth, Corpus Christi, Tyler, Ennis and Waco and employ about 1,000 people. Area dealerships include Allen Samuels Chrysler Dodge Jeep Ram and Allen Samuels Hyundai on Northeast Loop 820 in Fort Worth, and Allen Samuels Chrysler Dodge Jeep Ram Alliance on I-35 in north Fort Worth. It also has an Autoplex in Ennis.
With the acquisition, expected to close in the first quarter, Texas will account for approximately 25 percent of AutoNation’s total revenue.
Based in Fort Lauderdale, Florida, AutoNation is the country’s largest auto dealer chain, with more than 290 dealerships in 15 states.
The purchased was announced as the company said profits from continuing operations reached an all-time high of $119 million in the third quarter, up 12 percent from last year.
AutoNation has been soaring, analysts say, because of a mix of factors: a strong U.S. auto market rebounding from the Great Recession, savvy management, plus investments in technology that have helped adapt its inventory, websites and other basics to changing customer demand. Rebranding most stores under the AutoNation name in 2013 also has built the company’s reputation coast-to-coast.
The quarterly profit marks AutoNation’s 20th straight quarter of double-digit growth in earnings per share from continuing operations. Those earnings reached an all-time record of $1.05 in the third quarter, up 17 percent from a year earlier.
Quarterly revenue increased at a slower pace, up 9 percent from a year earlier to reach $5.4 billion.