Canada’s Alpha Auto Group expands in the U.S.
Canada’s Alpha Auto Group in November expanded its U.S. holdings into its second state with the purchase of its first Mercedes-Benz store, in Fresno, Calif.
The transaction to buy Mercedes-Benz of Fresno closed Nov. 22, with Scott Biehl and Triunity Automotive Group as sellers, said George Karolis, president of Presidio Group, an investment banking and advisory firm based in Atlanta and Denver. The firm represented the sellers in the transaction.
“We are thrilled to welcome our new Fresno teammates to the AAG family,” Alpha Auto Group said in a statement. “Adding Mercedes-Benz to our lineup has long been a goal of ours. We are excited to add the dynamic California market to our portfolio. It is a strategic addition and building block for our growth.”
The deal also included the sale of Central Valley Fleet Sales & Service in Fresno, a used-vehicle retailer and fleet service business, to Alpha Auto, Karolis told Automotive News in an email.
Alpha Auto of Toronto, Ontario, entered the U.S. in 2018 with the purchase Wilsonville Toyota and Wilsonville Subaru in Oregon. The group on its website said it is looking to buy single dealerships and dealer groups with as many 20 stores across Canada and the U.S.
Biehl said he no longer has any dealerships. In August, Triunity Automotive sold Jaguar-Land Rover Los Angeles to US Auto Trust, a dealership group led by Edward Glazer, an owner of the NFL’s Tampa Bay Buccaneers. Biehl was dealer principal of that store, and Presidio Group also represented him and Triunity Automotive in that sale.
Raymond acquires second new-car store
Gerry Raymond, president of Gerry Raymond Automotive, in October bought his second new-car dealership, Gerry Raymond Chrysler-Dodge-Jeep-Ram of Brookville, in Western Pennsylvania.
Drew Picon, a managing director of DCG Acquisitions, a Dave Cantin Group company, said he represented both buyer and seller in the Oct. 27 transaction.
The selling dealer was William J. Kelly of the former Kelly Chrysler-Jeep-Dodge-Ram store.
Raymond made his first dealership acquisition in 2021, buying the former Team Chevrolet-Buick-GMC, in Wintersville, Ohio, west of Pittsburgh. It was renamed Gerry Raymond Chevrolet-Buick-GMC. Another Dave Cantin Group company, DCG Capital, facilitated that earlier purchase, Picon said.
Raymond participated in DCG Capital’s Ownership Accelerator Program, which helps managers and executives at franchised dealerships and used-car stores buy their first new-vehicle store.
Capital for the Stellantis dealership acquisition was provided by Live Oak Bank and the buyer also was assisted by consultant Biltmore Automotive Services.
Raymond, in a phone interview, said that for his second purchase he sought a Stellantis dealership. “I already have Chevrolet-Buick-GMC, so I was looking to diversify myself, and my customers, with more brands,” he said.
Brookville, Pa. is a rural market, Raymond said, with the advantage of a large territory with few other dealerships around.
“With the surrounding areas, there’s so much business to be had and I think customers would really like to see somebody with a more aggressive approach like we have,” he said. “There are not as many dealerships in close proximity, for a 40- or 50-mile radius.”
Kelly’s father, former auto industry executive William S. Kelly, the former CEO of Saab Cars USA Inc., served as an informal adviser in the buy-sell negotiations, the son said.
William J. Kelly said the Chevrolet-Buick-GMC store was his only dealership. Dealerships are in demand and the current seller’s market was a factor in the decision to sell, he said.
“I’m going to retire — for right now,” Kelly said, adding “it was time” to sell.
