AutoNation Completes the Acquisition of RepairSmith

Rhea-AI Summary

AutoNation (NYSE: AN) has completed the acquisition of RepairSmith, a mobile automotive repair service, enhancing its after-sales offerings. This strategic move aims to tap into the growing non-franchised aftermarket by providing convenient repair solutions for customers, particularly those who have purchased vehicles outside of AutoNation's network. With this acquisition, AutoNation expects to accelerate growth and improve service delivery, benefiting from RepairSmith's operational capabilities. The addition of over 400 employees from RepairSmith further strengthens AutoNation's workforce, contributing to its goal of being the leading comprehensive transportation solutions provider.

Positive

• Acquisition of RepairSmith enhances after-sales service offerings.
• Expands market share in non-franchised aftermarket.
• Integration of over 400 RepairSmith team members strengthens workforce.
• Increases customer loyalty through diverse service options.

Negative

• None.

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Leading automotive retailer and #1 public dealer group, according to Reputation, completes acquisition of RepairSmith

Acquisition accelerates commitment to being the nation's most comprehensive transportation solutions provider

FORT LAUDERDALE, Fla., Jan. 26, 2023 /PRNewswire/ -- AutoNation, Inc. (NYSE: AN), America's most admired automotive retailer, today announced it has completed the acquisition of RepairSmith, a full-service mobile solution for automotive repair and maintenance, headquartered in Los Angeles, CA with a significant operational footprint in the southern and western United States. 

The acquisition of RepairSmith creates meaningful After-Sales business opportunities, including utilizing another channel to provide service to AutoNation's existing Customer base and introduce additional vehicle owners who have purchased vehicles outside the AutoNation dealer network. RepairSmith will serve as a resource for reconditioning and internal services to increase AutoNation's speed to frontline readiness and expedite vehicle delivery to Customers.

Mike Manley, CEO of AutoNation, stated, "Apart from the important outcome of adding over 400 talented and dynamic team members, the acquisition of RepairSmith represents a unique opportunity for us across many aspects of the automotive value chain. We have over 11 million Customers with different and diverse After-Sales needs. RepairSmith will add additional Customer-centric and convenient repair and service options for our Customers - further improving our penetration and loyalty."

Mr. Manley added, "The acquisition of RepairSmith accelerates AutoNation's ability to gain market share in the non-franchise aftermarket. Customers who have migrated away from franchised dealerships now have a competitive, more convenient alternative to the standalone maintenance and repair providers. They now have a mobile service solution backed by the country's most respected and admired automotive retail group. RepairSmith will add a strong competitive advantage to our AutoNation USA preowned business – which will now be able to offer After-Sales services to their Customers that other competitors cannot do. And finally, we will bring the full weight and scale of the AutoNation business to RepairSmith to accelerate their growth and success."

"We are excited to embark on the journey to deliver convenient auto repair with AutoNation. Our shared vision to improve the lives of people and their families provides a strong foundation that embodies our collective spirit of innovation and transformation. I'm incredibly proud of all we have built at RepairSmith. I look forward to unlocking even more value as we drive toward a bright future together," said Joel Milne, RepairSmith CEO.

Helping to fuel its innovation and operational excellence, AutoNation has appointed Christian Treiber as President of After-Sales. Mr. Treiber joined the AutoNation Executive Team and will lead the After-Sales team, whose objective is to drive the performance of After-Sales operations through continued development and implementation of strategic initiatives that further promote Customer satisfaction and loyalty while continuing to deliver strong results. Mr. Treiber will also be responsible for integrating the RepairSmith business into AutoNation as part of his role. He will work with Mr. Milne and the leadership team to continue the significant growth and geographical reach of RepairSmith's mobile repair and maintenance business. This responsibility includes developing and leveraging RepairSmith's unique capability of providing the most Customer focused and convenient After-Sales offering in the standalone used car market, working directly with the AutoNation USA leadership team.

About AutoNation, Inc.

AutoNation, a provider of personalized transportation services, is driven by innovation and transformation. As one of America's most admired companies, AutoNation delivers a peerless Customer experience recognized by data-driven consumer insight leaders, Reputation and J.D. Power. Through its bold leadership and brand affinity, the AutoNation Brand is synonymous with "DRVPNK" and "What Drives You, Drives Us." AutoNation is committed to being the nation's most comprehensive transportation solutions provider with easy, transparent, and Customer-centric services.

Please visit www.autonation.com, investors.autonation.com, and www.twitter.com/AutoNation, where AutoNation discloses additional information about the Company, its business, and its results of operations. Please also visit www.autonationdrive.com, AutoNation's automotive blog, for information regarding the AutoNation community, the automotive industry, and current automotive news and trends.

FORWARD-LOOKING STATEMENTS

This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements. Words such as "anticipates," "expects," "intends," "goals," "targets," "projects," "plans," "believes," "continues," "may," "will," "could," and variations of such words and similar expressions are intended to identify such forward-looking statements. Statements regarding our strategic initiatives, partnerships, or investments, including the planned expansion of our AutoNation USA pre-owned vehicle stores, our acquisition of RepairSmith, and our investments in digital and online capabilities, statements regarding our expectations for the future performance of our business and the automotive retail industry, and other statements that describe our objectives, goals, or plans, are forward-looking statements. Our forward-looking statements reflect our current expectations concerning future results and events, and they involve known and unknown risks, uncertainties, and other factors that are difficult to predict and may cause our actual results, performance, or achievements to be materially different from any future results, performance, and achievements expressed or implied by these statements. These risks, uncertainties, and other factors include, among others: our ability to implement successfully our strategic initiatives, partnerships, and investments, including the planned expansion of our AutoNation USA stores and our acquisition of RepairSmith; our ability to identify, acquire, and build out suitable locations in a timely manner; our ability to develop successfully our digital and online capabilities; our ability to maintain and enhance our retail brands and reputation and to attract consumers to our own digital channels; our ability to acquire and integrate successfully new franchises; restrictions imposed by vehicle manufacturers and our ability to obtain manufacturer approval for acquisitions; economic conditions, including changes in unemployment, interest, and/or inflation rates, consumer demand, fuel prices, and tariffs; supply chain disruptions and inventory availability; new and used vehicle margins; our ability to attain planned sales volumes within our expected time frames; our ability to successfully implement and maintain expense controls; the success and financial viability and the incentive and marketing programs of vehicle manufacturers and distributors with which we hold franchises; the response by federal, state, and local governments and other parties to, and the economic impacts of, the COVID-19 pandemic; natural disasters and other adverse weather events; the resolution of legal and administrative proceedings; regulatory factors affecting our business, including fuel economy requirements; the announcement of safety recalls; factors affecting our goodwill and other intangible asset impairment testing; and other factors described in our news releases and filings made under the securities laws, including, among others, our Annual Reports on Form 10-K, our Quarterly Reports on Form 10-Q and our Current Reports on Form 8-K. Forward-looking statements contained in this news release speak only as of the date of this news release, and we undertake no obligation to update these forward-looking statements to reflect subsequent events or circumstances.

 

 

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SOURCE AutoNation, Inc.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What is the significance of AutoNation's acquisition of RepairSmith?

The acquisition strengthens AutoNation's after-sales services and expands its market reach into the non-franchised aftermarket.

When did AutoNation complete its acquisition of RepairSmith?

AutoNation completed the acquisition on January 26, 2023.

How will the acquisition of RepairSmith impact AutoNation's business?

It enhances service delivery, allowing AutoNation to offer more convenient repair options to customers, thereby boosting loyalty and market share.

What is the stock symbol for AutoNation?

AutoNation's stock symbol is AN, listed on the NYSE.

Who will lead the integration of RepairSmith into AutoNation?

Christian Treiber has been appointed as President of After-Sales to lead the integration of RepairSmith.