Holman Automotive will acquire Kuni Automotive to create one of the largest privately owned dealer networks in the US.
The acquisition, expected to be finalized this summer, will create a bi-coastal dealer network with 33 dealerships and more than $3 billion in overall annual revenue, doubling Holman Automotive's retail holdings.
Holman currently has dealerships in New Jersey, Pennsylvania and Florida. Kuni Automotive, with dealerships in Washington, Oregon, California, Colorado and Kansas, will maintain its brand name and will be known as "Kuni Automotive, a Holman Enterprise." The terms of the deal will not be disclosed.
As a result of this deal, the majority shareholder in Kuni Automotive, the Wayne D. Kuni and Joan E. Kuni Foundation, a charitable foundation that has supported cancer research and worked to enhance the lives of developmentally disabled adults since 2005, will be able to fund its work well into the future.
Additionally, the foundation expects to be able to broaden the scope and geography of its charitable outreach.
Holman Board chairman Melinda K. Holman, who will join Kuni Foundation board said: "Our two companies share a deep culture of charity and community service."
"Knowing that more than half of the proceeds will go to the Kuni Foundation and serve people in need for decades to come is a wonderful byproduct of this transaction."
It was vital to Kuni Automotive CEO Greg Goodwin to find a buyer who not only shares his company's values, but would also create a company that is not just bigger, but better.
Goodwin, who will remain with the company in a leadership position said: "We are creating a company that is greater than the sum of its parts," said . "It's easy to get lost in the 'bigness' of this transaction, but 'big' doesn't serve a purpose if it doesn't improve the company."
Holman executive vice president and chief strategy officer William Cariss has been responsible for overseeing the Holman-Kuni transaction from start to finish. Once the transaction is complete, Cariss will be responsible for identifying future investment opportunities across Holman's business segments.
Cariss said: "As we consider future opportunities, we hope to find companies, like we did with Kuni, that have similar values and work ethics that blend well with the Holman culture."
Holman's expansion comes at a time of consolidation and innovation in the automotive industry.
Holman CEO Carl Ortell said: "Our acquisition of Kuni comes at a time when these two organizations have never been stronger. We are well-positioned to remain a leader in the auto industry as it continues to evolve.
"What's more, we are well-placed for future growth in all of Holman's business segments."
"We're creating a company with a global footprint that will allow our people to explore new career opportunities within the larger organization."
Holman plans to remain a privately owned company as it continues to grow and flourish.
Holman said: "Plan A is to remain a family-owned company for generations to come."
"And there is no Plan B."
