Cliff Banks - The Banks Report

Morgan Automotive Lands Top-Selling Dealership

June 27, 2023 — The Morgan Automotive Group finally announced its long-rumored acquisition of Al Hendrickson Toyota in Coconut Creek, FL, last week.

The transaction is one of five dealership buy-sells involving eight rooftops announced in the U.S. the last few days.

Founded in 1989 by Al Hendrickson Sr. and his son, Al Hendrickson Jr, the Toyota dealership grew to become one of the top-selling dealerships in the US for any brand. Hendrickson Jr. acquired the dealership from his father several years ago.

It is Morgan’s fifteenth dealership acquisition since early 2022, bringing its total to 67 dealerships and now is one of the top 10 selling dealer groups in the US according to Automotive News Top 150 ranking of top dealer groups.

Morgan acquired Kendall Hyundai-Genesis in Miami from the Potamkin Automotive Group Inc and a Kia, Subaru, and Chrysler Dodge Jeep Ram dealerships from Bill Bryan in Florida earlier this year.

The Morgan group, founded by Chairman Larry Morgan and run by his son, CEO Brett Morgan, has been tied to Redwood Capital Investments, a family office established by billionaire cousins Jim Davis, co-founder of the Allegis Group, and Steve Bisciotti, the owner of the Baltimore Ravens.

In 2020, Redwood helped finance the Morgan Group’s acquisitions of Jim Arrigo’s five Florida-based stores. Redwood also invested in the Hudson Automotive Group in 2018, helping grow the group to 48 dealerships.

Press releases and online comments from Haig Partners, the investment banker advising Hendrickson, indicate that Morgan’s purchase of the Toyota dealerships may be the largest transaction for a single-point store in industry history.

Other transactions announced in the last few days include:

  • Lithia Motors purchase of Wade Ford from Steve Ewing in Georgia;
  • Diehl Automotive Group’s acquisition of the Ron Lewis Ford and Kia stores in Beaver Falls, PA;
  • Delaney Automotive Group purchase of Stoltz Toyota, Hyundai CDJR in DuBois, PA (Dave Cantin Group advised);
  • Nielsen Automotive Group’s acquisition of Major Kia in Newton, NJ (Dave Cantin Group advised);
  • Alpha Auto Group’s acquisition of Lookers (in the UK).

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