Holman Automotive of Maple Shade, N.J., will acquire Kuni Automotive of Vancouver, Wash., creating a bi-coastal dealer network with 33 dealerships.
Article continues below
The deal not only creates one of the largest privately owned dealer networks in the country, but also ensures a long future for a major charitable foundation.
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.
"Our two companies share a deep culture of charity and community service," said Melinda K. Holman, Chairman of the Board of Holman, who will join the board of the Kuni Foundation.
"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.
"We are creating a company that is greater than the sum of its parts," said Goodwin, who will remain with the company in a leadership position.
"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's 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. ■