AutoNation Expands Footprint with the Acquisition of Two Stores in Colorado

Rhea-AI Summary

AutoNation (NYSE: AN) has announced the acquisition of Groove Ford and Groove Mazda in Englewood, Colorado, effective March 31, 2025. The dealerships have been rebranded as AutoNation Ford Arapahoe and AutoNation Mazda Arapahoe.

The acquired stores generated approximately $219M in annual revenue in 2024, selling nearly 5,000 new and used vehicles. This strategic expansion brings nearly 200 new associates to AutoNation and increases the company's presence in the greater Denver area to 22 total dealerships, including 13 Domestic, 6 Import, and 3 AutoNation USA locations.

This acquisition aligns with AutoNation's strategy to increase market density in existing territories, aiming to leverage scale synergies and enhance shareholder returns.

Positive

• Acquisition adds $219M in annual revenue
• Integration of 5,000 vehicle sales volume annually
• Expansion increases market density in Denver area
• Strategic growth to 22 total dealerships in Colorado

Negative

• None.

FORT LAUDERDALE, Fla., April 1, 2025 /PRNewswire/ -- AutoNation (NYSE: AN) today announced that it has acquired Groove Ford and Groove Mazda, effective March 31, 2025. The dealerships have been rebranded and will now operate under the names AutoNation Ford Arapahoe and AutoNation Mazda Arapahoe. In 2024, the stores sold nearly 5,000 new and used vehicles with approximately $219M in annual revenue. Both stores are located in Englewood, Colorado, and mark the first AutoNation Mazda and second AutoNation Ford in the state, bringing AutoNation's substantial footprint in Colorado to 13 Domestic, 6 Import, and 3 AutoNation USA dealerships concentrated in the greater Denver area.

"We are excited to welcome Groove Ford and Groove Mazda and their nearly 200 new associates to AutoNation," said Mike Manley, Chief Executive Officer at AutoNation. "These acquisitions build on our strategy to add density into markets where we already have a presence. It allows us to rapidly bring significant scale synergies to the new dealerships, expanding on the current success of these stores and delivering strong returns to our shareholders."

About AutoNation, Inc.

AutoNation, one of the largest automotive retailers in the United States, offers innovative products, exceptional services, and comprehensive solutions, and empowers its customers to make the best decisions for their needs. With a nationwide network of dealerships strengthened by a recognized brand, we offer a wide variety of new and used vehicles, customer financing, parts, and expert maintenance and repair services. Through DRV PNK, we have raised over $40 million for cancer-related causes, demonstrating our commitment to making a positive difference in the lives of our Associates, Customers, and the communities we serve.

Please visit www.autonation.com, investors.autonation.com, and www.x.com/autonation, where AutoNation discloses additional information about the Company, its business, and its results of operations.

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," "estimates," "intends," "strategy," "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 expectations for the future performance of acquired stores and for shareholder returns, as well as other statements that describe our strategies, 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 integrate successfully new acquisitions; our ability to maintain or gain market share; our ability to maintain and enhance our retail brands and reputation; economic conditions, including changes in unemployment, interest, and/or inflation rates, consumer demand, fuel prices, and tariffs; the success and financial viability and the incentive and marketing programs of vehicle manufacturers and distributors with which we hold franchises; 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

How much revenue did the newly acquired AutoNation dealerships in Colorado generate in 2024?

The acquired dealerships generated approximately $219M in annual revenue in 2024.

How many vehicles did the new AutoNation Colorado dealerships sell in 2024?

The acquired stores sold nearly 5,000 new and used vehicles in 2024.

How many dealerships does AutoNation (AN) now operate in Colorado after the acquisition?

AutoNation now operates 22 dealerships in Colorado: 13 Domestic, 6 Import, and 3 AutoNation USA locations.

When did AutoNation (AN) complete the acquisition of Groove Ford and Groove Mazda?

AutoNation completed the acquisition on March 31, 2025.

How many new employees joined AutoNation through the Colorado dealership acquisition?

The acquisition brought nearly 200 new associates to AutoNation.