Auto groups continue to leverage their size and resources in acquiring other dealerships. The Landers Auto Group is the 25th largest private dealer in the Mid-South and just got a little bigger with its recent acquisition of Bud Davis Cadillac in Memphis, TN. We wanted to take a deeper dive into this headline and learn more about what the buyout means for the market and both dealerships.
Rebranding & Restructuring to Come
Bud Davis Cadillac has been in business for over 45 years and is renowned in the Memphis area as an iconic family-owned store. Kent Ritchey, president of Landers, shared that Gary Davis, son of the founder Bud Davis, is retiring. The operation is being renamed as Landers Cadillac of Memphis, and new signage is slated for erection by Friday. Davis Cadillac’s general manager, Bobby Cline, will stay on in his current role and Jeff Fields of Landers, will assume the role of managing partner at this location. As of right now, all 71 employees have been offered to continue working in their current positions. Almost all of them are planning to stay.
The Crown Jewel for Landers
According to Ritchey, Bud Davis Cadillac has a considerable presence in the Memphis area. This is the first Cadillac franchise for the Landers Auto Group, and executives are considering it to be the crown jewel in the group’s already impressive portfolio. The lineup of brands under the Landers umbrella includes Landers Ford, Landers Nissan, Landers Chrysler Dodge Jeep Ram, Landers Buick GMC, and Landers Auto Sales in Southaven. In Jackson, the company operates Audi Jackson, Jaguar Jackson, Land Rover Jackson, and Volkswagen Jackson. Ritchey calls this move a “monumental business transaction” that appears to be positioning Landers in a pivotal leader in the market.
Eye on Future Innovation & Growth
This latest acquisition isn’t isolated. The company has purchased other dealerships, including Country Ford, in Southaven in December of 2018. Overall, the company has roughly 500 employees in total today. According to Memphis Business Journals research, The Landers Auto Group earned $375.35 million in gross revenue for 2018. Ritchey says the group is excited to venture into Cadillac territory as a leading brand in “innovation and design.”
What Does This Latest Acquisition Headline Mean to You?
If you’re in the Mid-South region of the country, you’ll notice one of your competitors just added another brand, service location, and resources to its arsenal. For dealers in other parts of the country, you may be experiencing similar acquisition activity in your markets. It’s common knowledge that dealer groups are becoming more and more popular. Dealer owners continue to look to diversify their brands and grow their geographic footprints. Keeping your finger on the pulse of similar changes and acquisitions in your market can help you strategize in your ever-changing competitive landscape.
The Landers Auto Group is one brand larger as Bud Davis Cadillac comes into the fold. Landers managing partner, Jeff Field, says they’re ready to “add Landers DNA into this legacy dealership.”