America’s Car-Mart, Inc. to Acquire Smart Auto Dealerships
America’s Car-Mart (NASDAQ: CRMT) announced the acquisition of dealership assets from Smart Auto, including locations in Johnson City and Knoxville, Tennessee. The company expects to close on the Johnson City dealership by year-end 2021, followed by the Knoxville location by December 31, 2022. This acquisition is aimed at expanding Car-Mart's footprint in Tennessee and enhancing customer service with Smart Auto's experienced team. Existing finance receivables will remain with the seller, and the deal emphasizes quality vehicles and financing options for customers.
- Expansion into Tennessee through Smart Auto acquisition.
- Increased presence and market share in key locations.
- Addition of experienced team from Smart Auto to enhance operations.
- Financial risks associated with timely closure of the transaction.
- Potential challenges in fully realizing transaction benefits.
- Integration risks between Car-Mart and Smart Auto.
Rogers, Arkansas, Dec. 15, 2021 (GLOBE NEWSWIRE) -- America’s Car-Mart, Inc. (NASDAQ: CRMT) today announced that its subsidiary, America’s Car Mart, Inc. (the “Company”), has entered into a definitive agreement to purchase the ongoing dealership assets of Smart Auto, Inc., Smart Auto Johnson City, Inc., and Bright Motors Company LLC (collectively, “Smart Auto”). As a result, the Company will gain dealership locations in Johnson City, Tennessee and Knoxville, Tennessee. The existing finance receivables will be excluded from the transaction and will be collected by the seller. The Company expects to close on the Johnson City location by the end of 2021 and the Knoxville location by December 31, 2022.
“We are very excited to welcome Smart Auto into the Car-Mart family,” said Jeff Williams, President and Chief Executive Officer of the Company. “Smart Auto brings a highly experienced and talented team of associates while also helping to create a stronger presence and expanding our footprint in Tennessee. We are excited for the opportunities to grow our customers in this market.”
“Smart Auto, owned by Vincent Keller, has been in business since 2005 and their values align perfectly with ours. We are looking forward to getting to know their customers and help to keep them on the road,” added Mr. Williams. “The Smart Auto team is professional, capable and focuses on providing quality, affordable vehicles to their customers. Smart Auto will be a fantastic addition to our business and will help us build a better future for the Company, our associates and our customers.”
About America's Car-Mart
America’s Car-Mart operates automotive dealerships in twelve states and is one of the largest publicly held automotive retailers in the United States focused exclusively on the “Integrated Auto Sales and Finance” segment of the used car market. The Company specializes in the sale of quality, pre-owned vehicles, and features flexible used car financing options for customers with bad credit, no credit, repossessions or even past bankruptcy and emphasizes superior customer service and the building of strong personal relationships with its customers. The Company operates its dealerships primarily in smaller cities throughout the South-Central United States selling quality used vehicles and providing financing for substantially all of its customers. For more information about America’s Car-Mart, including investor presentations, please visit our website at www.car-mart.com.
This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements address the Company’s future objectives, plans and goals, as well as the Company’s intent, beliefs and current expectations regarding future operating performance, including with respect to the Company’s acquisition of Smart Auto, and can generally be identified by words such as “may,” “will,” “should,” “could, “believe,” “expect,” “anticipate,” “intend,” “plan,” “foresee,” and other similar words or phrases. These forward-looking statements are based on the Company’s current estimates and assumptions and involve various risks and uncertainties. As a result, you are cautioned that these forward-looking statements are not guarantees of future performance, and that actual results could differ materially from those projected in these forward-looking statements. Factors that may cause actual results to differ materially from the Company’s projections include, but are not limited to:
- the possibility that the acquisition does not close when expected or at all because required conditions to closing are not received or satisfied on a timely basis or at all;
- the risk that the benefits from the transaction may not be fully realized or may take longer to realize than expected, including as a result of changes in general economic and market conditions, consumer finance laws and regulations, and the degree of competition in the geographic and business areas in which the Company and Smart Auto operate;
- the ability to promptly and effectively integrate the businesses of the Company and Smart Auto;
- the reaction to the transaction of the companies’ customers, employees and counterparties; and
- diversion of management time on acquisition-related issues.
Additionally, risks and uncertainties that may affect future results include those described from time to time in the Company’s SEC filings. The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the dates on which they are made.
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