PLANTATION, FL , Sept. 01, 2020 (GLOBE NEWSWIRE) -- LMP Automotive Holdings, Inc. (NASDAQ:LMPX) (the "Company" or "LMP"), an e-commerce and facilities-based platform for consumers who desire to buy, sell, subscribe for or finance pre-owned and new automobiles, today announced the acquisition of 9 Southeast Dealerships Including 10 New Vehicle Franchises.
Richard Aldahan, the Company's Chief Operating Officer stated,
"We are thankful to both the LMP and our counter party employees and professionals who have worked tirelessly over the last few months on this transaction. The talent in
both organizations and the resilience of our business model will put us in a
position to become a stronger and more diversified company. I am pleased to
welcome all our new future colleagues and look forward to working and growing together as we roll-out our hybrid e-commerce home delivery, site-to-store, and ship-from-store delivery strategies."
"The operating assets to be acquired include an 85% interest in 5 new vehicle franchises and 3 pre-owned centers, all of which are located in the attractive West Virginia market, as well as a 100% interest in 4 new vehicle franchises in the Tennessee market: 1 Subaru,1 Hyundai, 1 KIA, 2 Chevrolet, 2 GMC, 1 Cadillac, and 2 Buick. These clustered locations combined with our current operations and previously contracted acquisition provide for reconditioning, service, logistical and fulfillment efficiencies which are important cost saving components in e-commerce, sales and distribution. With these and our previously announced acquisition, including our current operations, we expect to have approximately 2,000 vehicles exposed and available online on our platform to our customers"
Sam Tawfik, the Company's Chairman and Chief Executive Officer stated,
"We are excited to expand our fulfillment footprint in this Eastern United States region which is in line with our hybrid e-commerce and dealership clustering strategy. We are looking forward to enabling our subscription and e-commerce technology over these dealer platforms in order to further expand our online fulfillment presence and add to their historical success."
Mr. Tawfik also added,
"As we have mentioned previously, we are seeing a robust acquisitions market and have a pipeline of prespective acquisitions that we are in active negotiations with. We intend to continue to build our pipeline of prospective dealership acquisitions and intend on accelerating our acquisition strategy moving forward. LMP plans on adding 30 to 40 dealerships in 2021 that could contribute $5 to $7 per share in additional net income, expand our e-commerce fulfillment presence, provide efficiencies as well as increase our inventory exposed in our lmpmotors.com online store."