Lexus of Sacramento and Lexus of Roseville, the only Lexus dealerships in the greater Sacramento metro area, acquired by Lithia Motors
IRVINE, Calif.--(BUSINESS WIRE)--Kerrigan Advisors, a leading sell-side advisory firm to auto dealers in the U.S., represented and advised the owner on the recent sale of Lexus of Sacramento and Lexus of Roseville (RPM Luxury Sales, Inc.) to Lithia Motors. RPM Luxury Sales, Inc. is comprised of the only two Lexus dealerships in the Sacramento MSA. The sale marks the 86th and 87th dealership sale, and the 6th and 7th Lexus franchise sale, Kerrigan Advisors has represented since 2015, more than any other advisory firm in the industry.
In 1989, RPM opened Lexus of Sacramento on Fulton Avenue, Sacramento's original car row, and in 2003 the company opened Lexus of Roseville as a companion point. Lexus of Sacramento and Lexus of Roseville earned the Elite of Lexus award for a combined 36 years; Sacramento was first to be named Elite in 1992 and the store went on to earn the distinction for 19 consecutive years from 1999 to 2018. Lexus of Roseville, meanwhile, earned the Elite distinction every single year since its opening in 2003 for a total of 16 years. The Elite of Lexus award is the highest honor a Lexus dealer can receive.
"The Elite award is a perfect symbol of RPM's spirit of excellence and high level of customer and community service" said Erin Kerrigan, Founder and Managing Director of Kerrigan Advisors. "These dealerships are truly top notch, located in the highest volume auto retail markets in the Sacramento MSA, with impressive histories of success. Our experience with 7 previous Lexus transactions was key in enabling us to lead this sale process to success for RPM."
"Kerrigan Advisors' deep insights into the current buy-sell market, their expertise selling Lexus franchises, and their attention to how this decision factored into our company's long term business goals, gave us peace of mind as they shepherded us through a successful sale process" said the owner of RPM Luxury Sales, Inc.
In addition to representing the dealerships' decades of first-class sales and service commitment, Kerrigan was also focused on balancing the high buyer demand for Lexus in a major California metropolitan area.
"It was important, going into this, to remember that Lexus has the highest sales per franchise of all luxury franchises and the lowest number of dealers in its network" said Ryan Kerrigan, Managing Director of Kerrigan Advisors. "Of course, Lexus is known for its results. We applied our experience with other Lexus transactions, and examined the unique and remarkable story of Lexus in the Sacramento MSA, to achieve a transaction that met the goals of our client. In the last 12 months alone, we have represented on the sale of 5 Lexus franchises, as the network finds more families deciding now is the time to exit, primarily due to a lack of succession."
David Meyer of Arent Fox LLP served as legal counsel to the seller.
Kerrigan Advisors is the most active sell-side advisor in the auto retail industry. In addition to its sell-side advisory work, Kerrigan Advisors offers strategic consulting services to dealers and their families, including growth planning, capital raising and valuation analysis, creating value at every step of the auto retail lifecycle.
- Auto Remarketing