Despite its large footprint all through a tri-point out location, Zeigler Automotive Group even now uncovered itself missing a number of of the huge name luxury brand names in its portfolio.
“The a single franchise I obtained questioned about most was Mercedes,” said Aaron Zeigler, president and CEO of Kalamazoo-centered Zeigler Automotive Team, which operates 75 franchises and 29 suppliers in the course of Michigan, Indiana and Illinois. “That was possibly No. 1 on our want list. The next a single I bought asked about the most that we did not have was Land Rover.”
MIBIZ FILE Picture
Zeigler and his team had been ready to examine people and other names off of their wishlist at the commencing of 2020 when the enterprise obtained a few luxurious dealerships from Barrington, Sick.-centered Motor Werks Vehicle Group.
The deal was identified as the winner in the 2021 MiBiz M&A Deal of the Year Awards in the retail class.
Through the offer, Zeigler Automotive Group acquired an Infiniti store (its second in the sector) and a Mercedes-Benz and Sprinter keep in Hoffman Estates, Unwell., in addition to a Jaguar Land Rover keep in close by Schaumburg, Ill.
Zeigler also promotions Chrysler, Alfa Romeo, Maserati, Fiat and Chevrolet in the similar market place.
The acquisition infused the regional dealership with 5,000 new models each yr with a projected benefit of $350 million in sales per year. This boosts the company’s annual revenue numbers to the neighborhood of $1.6 billion on 40,000 models sold.
For every an early 2020 report by Automotive News, Zeigler Automotive Team was rated No. 61 in dealerships nationwide for new car gross sales units, which was 15,888 autos and listed revenue of practically $1.3 billion.
The deal, which was prompted when Motor Werks approached Zeigler, was also the major a single for Zeigler in phrases of cost. Zeigler famous that Hoffman Estates and Schaumburg are high-quantity marketplaces in the Midwest.
No stranger to scooping up available dealerships, Zeigler said that his staff is equipped to streamline the integration procedure.
“When we go to get a new dealership, or numerous dealerships, the acquisition staff will demonstrate up and get all the systems integrated so we mirror the units we have in our other dealerships, which genuinely streamlines factors for us,” he explained. “We had been ready, in this specific situation, to convey those stores into our fold and definitely not skip a conquer.”
The offer was completed ahead of the COVID-19 pandemic took keep in the U.S. Even by means of the pandemic, Illinois under no circumstances shut down entirely, and Zeigler’s new dealerships had to crawl by way of a selection of constraints. After limitations had been lifted, sales picked up in a massive way.
In reality, Zeigler has seen a profits bonanza business-huge throughout most of the pandemic, which has continued into 2021, when the business enterprise just recorded its very best January ever.
It also proved to be a fantastic time to acquire the luxury makes that Zeigler Automotive Team did.
“The luxury manufacturers ended up additional in demand from customers than any other manufacturers we had,” Zeigler reported. “And I really do not know why that is. Even throughout the shutdown, they nevertheless carried out very well.”
Zeigler continues to keep his ear to the ground for alternatives, and he expects considerable M&A exercise in this area as a complete.
“I believe there are likely to be a whole lot of alternatives out there,” Zeigler explained.