Grossinger Auto Group sells dealerships to AutoCanada for $86 million
The Grossinger Auto Group, the oldest family-owned auto dealership in Illinois, has been purchased by Canadian auto dealer group AutoCanada for about $86 million, the groups said today.
AutoCanada will acquire Grossinger's eight dealerships in the Chicago area, including Grossinger Chevrolet and Grossinger Hyundai, both in Palatine, as well as its six-brand auto mall in downstate Bloomington/Normal.
Sam Grossinger first opened in 1928 and sold Hupmobiles and, later, Pontiacs. Grossinger Auto Group grew into a network that sold nearly 15,000 new and used vehicles and generated about $401 million in revenue in 2017. The group employs about 700 people and is currently led by third-generation family members Caroline and Gary Grossinger, according to the auto group's website.
The acquisition gives Edmonton, Alberta-based AutoCanada - one of Canada's largest publicly-traded auto groups - a larger footprint in the U.S., according to company officials. The group operates 54 dealerships comprising 62 franchises in eight provinces throughout Canada, according to its website, selling 23 different vehicle brands.
"This is exactly the kind of acquisition that will be instrumental to accelerating our growth," said AutoCanada President and CEO Steven Landry. "Acquiring a cluster of dealerships in Chicago gives us a significant presence in a major urban market and follows our pattern of success in Canada."
Most of the dealerships will continue to operate under the Grossinger name and local store leadership and staff will be encouraged to remain, according to a statement from AutoCanada. Richard Zanetti, who currently leads AutoCanada's dealership platform in Calgary, Alberta, will relocate to Chicago an head up a management team to oversee the company's group. He will report to Landry.
"Once we decided to sell our business we needed to ensure we found a purchaser who was aligned with our priorities of providing employee security, continuity of our community relationships, and our focus on the customer experience," said Grossinger co-president Caroline Grossinger. "We were able to find those priorities within the AutoCanada team."
AutoCanada will finance the acquisition through a combination of loans and money received from the company's recent divestiture of dealerships in Canada. It is expected to close in the second quarter of 2018.