After 20 Years, George C. Chaconas of Performance Brokerage Services Advises on the Sale of Motorcycles of Charlotte and Motorcycles of Greensboro in North Carolina to Sonic Automotive

Rhea-AI Summary

Sonic Automotive (NYSE: SAH) has acquired Motorcycles of Charlotte and Motorcycles of Greensboro in North Carolina from Mark and Gail Engel. This acquisition expands Sonic's powersports division, following their previous acquisition of 13 dealerships across South Dakota and Texas.

The acquired dealerships are among the top European motorcycle dealers in the Southeast, carrying brands like BMW, Ducati, Triumph, and Royal Enfield. The Charlotte location operates from a 19,000-square-foot facility, while both dealerships will maintain their current locations. This transaction strengthens Sonic Automotive's presence in the Southeast powersports market.

Sonic Automotive, a Fortune 500 company, is ranked #6 on the 2024 Automotive News Top 150 Dealership Groups based on 2023 new vehicle retail sales units.

Positive

• Expansion of powersports division through strategic acquisition of established dealerships
• Addition of premium European motorcycle brands to portfolio
• Geographic expansion in Southeast market
• Diversification of business model beyond traditional automotive retail

Negative

• None.

Insights

Financial Analyst

This acquisition marks a significant strategic expansion for Sonic Automotive (SAH) in the powersports sector. The addition of these two well-established European motorcycle dealerships in Charlotte and Greensboro strengthens SAH's growing powersports division, which already includes 13 dealerships across South Dakota and Texas. The deal aligns with SAH's diversification strategy, expanding their premium brand portfolio to include BMW, Ducati, Triumph and Royal Enfield in key Southeast markets. These locations are particularly valuable given their strong market position and Sonic's headquarters being in Charlotte. While the financial terms weren't disclosed, the acquisition of these top-performing dealerships should contribute positively to Sonic's revenue stream and market presence in the powersports segment. The company's strategic pivot into powersports demonstrates their commitment to diversifying beyond traditional automotive retail, potentially providing a new growth vector for the Fortune 500 company.

Market Research Analyst

The powersports industry acquisition landscape is heating up, with this deal highlighting the growing interest from major automotive retailers in diversifying their portfolio. The motorcycle market, particularly in the premium European segment, represents a lucrative opportunity with higher margins compared to traditional automotive retail. These dealerships' 20-year track record and prime locations in Charlotte and Greensboro provide Sonic with instant market leadership in the Southeast's European motorcycle segment. The timing is strategic, as the powersports industry continues to see strong consumer demand, especially in the premium segment. For SAH investors, this expansion represents a calculated move into a complementary market with different cyclical patterns than traditional auto retail, potentially helping to smooth out revenue fluctuations.

IRVINE, Calif., Dec. 6, 2024 /PRNewswire/ -- Performance Brokerage Services, the leader in dealership buy-sell activity, announces the sale of Motorcycles of Charlotte and Motorcycles of Greensboro in North Carolina to Sonic Automotive from Mark and Gail Engel.

Performance Brokerage Services, North America's highest volume dealership brokerage firm, is pleased to announce the sale of Motorcycles of Charlotte and Motorcycles of Greensboro in North Carolina to Sonic Automotive from Mark and Gail Engel.

Sonic Automotive, a publicly traded Fortune 500 company headquartered in Charlotte, North Carolina (NYSE stock symbol: SAH), is ranked #6 on the 2024 Automotive News Top 150 Dealership Groups based on 2023 new vehicle retail sales units. In recent years, the company has expanded into the powersports market by establishing the Sonic Powersports division. This move was marked by the acquisition of 13 dealerships across South Dakota and Texas, representing renowned brands like Harley-Davidson, Indian Motorcycle, Polaris, Can-Am, Kawasaki, Suzuki, BMW, and Ducati. The purchase of Motorcycles of Charlotte and Motorcycles of Greensboro further strengthens their footprint in the Southeast and highlights their continued commitment to the powersports sector.

Mark Engel, President of Motorcycles of Charlotte and Motorcycles of Greensboro, began his journey to success over 20 years ago when he, his wife Gail Engel, and Tony Ryan, purchased Motorcycles of Charlotte. Originally a BMW dealership, it quickly grew into one of the Southeast's top European motorcycle dealers, adding brands like Ducati, Triumph, and Royal Enfield. As demand increased, Mark expanded in 2010 with a new 19,000-square-foot facility. In 2019, he further expanded by acquiring Motorcycles of Greensboro. Today, both dealerships are well-established in their communities and remain among the top European motorcycle dealers in the country.

Mark Engel commented, "Juan Pardo and George Chaconas of Performance Brokerage Services were instrumental in helping me to find the right buyer for Motorcycles of Charlotte and Motorcycles of Greensboro. George originally introduced me to Performance Brokerage Services back in 2008. At that time, I had no interest in selling, but we started a dialogue that lasted until this day. When I decided to actively look for the next owner of my stores, Juan Pardo worked with me in finding the right fit for me and my staff. Together we talked with a number of prospects and discussed their strengths and challenges in being a successful multi-store powersports dealer. Juan introduced me to Sonic Automotive who was building a powersports division to diversify their portfolio. Sonic Automotive was an ideal candidate for taking over my stores and taking care of my employees and customers for years to come. I would not have been successful in meeting with and working through the acquisition process with Sonic Automotive without the expertise and assistance of Juan and George. I recommend them highly whether you want to purchase or sell a powersports dealership! Thank you, Juan and George, for everything!"

Over the last 5 years, Performance Brokerage Services has advised on the sale of over 300 dealerships, making it the highest volume dealership brokerage firm in North America. George C. Chaconas, Senior Partner, Juan C. Pardo, Partner, and Courtney A. Bernhard, Partner of the Harley-Davidson & Powersports Division for Performance Brokerage Services were the exclusive sell-side advisors for this transaction.

George Chaconas stated, "It has been a pleasure knowing Mark, Gail, and Tony over the past 15 years. From our first meeting in 2008 at their original dealership to the successful sale of Motorcycles of Charlotte and Motorcycles of Greensboro to Sonic Automotive, it has been both an honor and a privilege to represent them—guiding them through the complexities of the buying and selling process while helping to maximize value. The transaction was a great success for both sides, and I look forward to Mark's continued involvement in the dealerships."

Juan Pardo commented, "Having known Mark for over 10 years, he became not only a client but also a friend. When it came time to sell his dealerships, we understood it wasn't an easy decision and finding the right buyer was of utmost importance. Sonic Automotive is truly committed to continuing Mark's legacy and growing their presence in the Charlotte and Greensboro community. I wish Mark and Gail the best in the future and look forward to helping Sonic with future opportunities to expand their powersports division."

Mark and Gail Engel were represented by Logan Parker and Lee Lovett at Bass Sox Mercer in Tallahassee, Florida.

Sonic Automotive was represented by LaToya Parker and Noah Ganz at Parker Poe in Charlotte, North Carolina.

Motorcycles of Charlotte will remain at its current location at 731 Westinghouse Boulevard in Charlotte, North Carolina, and Motorcycles of Greensboro will remain at its current location at 2407 Greengate Drive in Greensboro, North Carolina.

About Performance Brokerage Services

Performance Brokerage Services, Inc. is North America's highest volume dealership brokerage firm, specializing in buy-sell activity for automotive, RV, commercial truck, powersports, and equipment dealerships.

With over 30 years of experience, 900 dealerships sold, and a 90% closing rate, the company's reputation is unmatched and governed by the utmost ethical conduct and integrity.

The company offers a unique approach by providing complimentary estimates of value with no upfront fees or retainer, no reimbursement of costs, and paid a success fee only after the transaction closes.

Headquartered in Irvine, California, and supported by 9 regional offices in Utah, Texas, Illinois, Florida, Virginia, Ohio, New Jersey, Alberta and Ontario, clients benefit from national exposure with local representation.

As trusted and respected experts in the field, the company utilizes an extensive network of industry related attorneys, accountants, hundreds of registered buyers, and longstanding relationships with various vehicle manufacturers.

For more information about the services offered by Performance Brokerage Services, visit https://performancebrokerageservices.com. 

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SOURCE Performance Brokerage Services, Inc.

FAQ

What dealerships did Sonic Automotive (SAH) acquire in North Carolina?

Sonic Automotive acquired Motorcycles of Charlotte and Motorcycles of Greensboro from Mark and Gail Engel.

What motorcycle brands are sold at the newly acquired Sonic Automotive (SAH) dealerships?

The dealerships sell European motorcycle brands including BMW, Ducati, Triumph, and Royal Enfield.

How many powersports dealerships has Sonic Automotive (SAH) acquired recently?

Including these two dealerships, Sonic has acquired 15 powersports dealerships, with 13 previous acquisitions in South Dakota and Texas.

What is Sonic Automotive's (SAH) ranking in the 2024 Automotive News Top 150 Dealership Groups?

Sonic Automotive is ranked #6 on the 2024 Automotive News Top 150 Dealership Groups based on 2023 new vehicle retail sales units.