AutoNation to significantly increase Customer retention value proposition through expanded and innovative After-Sales business and continue to extend its range of transportation products and services.
AutoNation, Inc. (NYSE: AN), America’s largest and most admired automotive retailer, announced it has entered into an agreement to acquire RepairSmith, a full-service mobile solution for automotive repair and maintenance, headquartered in Los Angeles, CA with a significant operational footprint in the southern and western United States.
“AutoNation has embarked on a strategy to be the nation’s most comprehensive provider of transportation solutions, meeting the mobility needs of today’s and tomorrow’s Customer through a broad, connected range of products and services that are clearly focused on providing our Customers and their households a comprehensive, unique suite of transportation solutions.
AutoNation already has over 12 million Customers who have shopped with us, a number that grows every day, and by providing an expansion of our group’s capabilities, we not only begin to truly leverage our scale, but most importantly offer an expanded range of products and services that will increase both Customer loyalty and deepen our share of our Customers’ household related mobility spend.
Earlier this year, we added captive financing capabilities and initiated the development of mobility solutions to expand our Customer offerings. RepairSmith is the next step in our plan. It expands AutoNation’s ability to penetrate the extensive After-Sales service market and conveniently respond to our Customers’ needs by broadening the reach of our existing After-Sales network.” said Mike Manley, AutoNation’s Chief Executive Officer.
The acquisition of RepairSmith will provide AutoNation’s After-Sales business with another channel to provide service to our existing Customer base and introduce additional vehicle owners who have purchased vehicles outside the AutoNation dealer network. Although roughly 80% of vehicles sold by AutoNation receive annual service at franchised dealerships during the first three years of ownership, the percentage falls off dramatically in subsequent years. RepairSmith offers Customers the convenience of services and repairs at their home, workplace, or on-site for fleet vehicles. AutoNation will also utilize RepairSmith as a resource for reconditioning and internal services to increase our speed to frontline readiness and expedite vehicle delivery to Customers.
The transaction, pursuant to which AutoNation will acquire RepairSmith for $190 million, is expected to close in the first quarter of 2023, subject to customary closing conditions and regulatory approvals.
