Private Dealer Groups Target Specific Markets and Brands
SAN FRANCISCO, March 8, 2016 – The Presidio Group LLC, through its subsidiary Presidio Merchant Partners LLC, advised the shareholders of JWM, Inc. and HCHT, LLC in the sale of both dealerships to an investor group led by David L. Peterson of Tafel Motors, the owner of the Mercedes-Benz dealership in Louisville, Kentucky, and former owner of Mercedes-Benz of Encino, Mercedes-Benz of Calabasas, and several other automotive dealerships in California.
The transaction was completed on March 7, 2016. Terms were not disclosed.
“We are very proud of the business that we have built over the last 28 years. My partners and I have seen great returns out of these two stores and felt that now was the time to monetize our long-term investment,” said Dana Hackney, Dealer Principal and Partner of JWM, Inc. and HCHT, LLC, who began his career with Mercedes-Benz dealerships in 1971. “We wanted our sale led by an investment bank that would run a tight and thoughtful process with the highest level of confidentiality. I have known Presidio for years, and they really understand the importance of these requirements. The outcome exceeded our expectations, and I would comfortably recommend Presidio to my friends in the car business.”
“We are excited to expand our long-term relationship with Mercedes-Benz and to enter the Cincinnati market,” said David L. Peterson. “I have been a Mercedes-Benz dealer for 34 years, and my partners and I have been specifically targeting this brand as a result of our long-term success and relationship with Mercedes-Benz. I consider Dana Hackney a friend, and he represented the selling shareholder group with dignity. Presidio was extremely professional throughout the process.”
Brodie Cobb, Founder and Executive Chairman of Presidio and head of the firm’s automotive practice, stated, “Presidio is honored to have represented the JWM, Inc. and HCHT, LLC shareholders in the sale of these two Mercedes-Benz stores in Cincinnati. We again saw extremely strong overall demand for these luxury franchises with the strongest demand coming from David and his experienced team with a specific brand focus on Mercedes-Benz.” James Taylor, Managing Director of Presidio, added, “This transaction shows the strength of focused acquisition approaches and the strong financial and management resources of certain U.S. private dealer groups.”
Michael Moeddel of Keating Muething & Klekamp PLL served as legal counsel and Ron Sompels, CPA of Crowe Horwath LLP provided accounting services to JWM, Inc. and HCHT, LLC. Richard Usher of Furman Usher, Inc. served as legal counsel to David L. Peterson.
Presidio’s automotive practice focuses on dealership transactions over $25 million in value. Presidio’s professionals have closed more than 50 auto retail related purchases, sales, and capital raises totaling more than $3 billion. They also publish Presidio’s Where the Rubber Meets the Road, a leading source of information for auto retailers on corporate finance and M&A activity, and speak at numerous industry conferences.