Haig Partners Serves as Exclusive Sell-Side Advisor on the Sale of River States Freightliner Dealerships to Penske Automotive’s Premier Truck Group
Haig Partners , a leading advisory firm, acted as the exclusive sell-side advisor for the sale of River States Truck and Trailer to Premier Truck Group, a subsidiary of Penske Automotive Group (NYSE:PAG). The acquisition is projected to generate $200 million in annualized revenue for Premier Truck Group, which operates 48 locations across the U.S. and Canada. River States, with five facilities in Wisconsin and Minnesota, adds 161,000 sq. ft. of space, 96 service bays, and 63 technicians to Premier Truck Group's portfolio. Joe Laux, the former CEO of River States, praised his team and Haig Partners for their roles in the successful transaction. This acquisition aims to enhance customer service and operational efficiency for Premier Truck Group.
- Projected $200 million increase in annualized revenue for Premier Truck Group.
- Expansion to 48 locations across the U.S. and Canada.
- Addition of 161,000 sq. ft. of facilities, 96 service bays, and 63 technicians.
- Potential for improved customer service and operational efficiency.
- Haig Partners' advisory role adds credibility and expertise to the transaction.
- No immediate mention of the acquisition cost, posing uncertainty on financial impact.
- Potential integration challenges with new facilities and staff.
- Possible short-term disruption in operations during the transition period.
Insights
The acquisition of River States Truck and Trailer by Penske Automotive’s Premier Truck Group is a significant event in the commercial truck dealership industry. One of the key takeaways is the projected addition of
From a financial perspective, the move aligns well with the ongoing trend of consolidation in both the heavy truck and auto retail industries. Such consolidations often result in operational efficiencies due to economies of scale. Moreover, Premier Truck Group's strategy to leverage its scale for operational efficiency indicates a well-thought-out plan for integrating the new assets into its existing network.
Overall, this acquisition is likely to be viewed positively by stakeholders, particularly due to the enhanced service capabilities and the strategic expansion into new markets.
This acquisition marks a significant growth milestone for Premier Truck Group in the U.S. and Canada. By adding River States' five facilities and expanding their geographical reach, Premier Truck Group can offer more extensive service coverage, which is critical for fleet operators who require dependable service across multiple locations. The presence in Western Wisconsin and Eastern Minnesota opens up new market opportunities and provides Premier Truck Group with a strategic foothold in these regions.
It's also worth noting the increasing trend of larger, well-capitalized firms acquiring smaller dealerships. This move helps in providing a comprehensive sales and service network, which is increasingly becoming a necessity in the industry. Large fleet operators prefer dealing with fewer, larger entities that offer consistent service across various locations. This trend could lead to more acquisitions in the near future, further consolidating the market.
For investors, this acquisition underscores Premier Truck Group's commitment to growth and operational excellence. The ability to maintain an exceptional place for employees to work, as emphasized by Premier Truck Group's president, could also translate into better customer service and higher customer satisfaction.
River States operates five facilities throughout the
Joe Laux, the long-time owner and CEO of River States, said, “I’d like to thank my hardworking teammates for all their contributions to our success over the years. We punched far above our weight, providing excellent service to customers near and far. I will miss being a Freightliner dealer, but I’m excited to spend more time with my family, friends and new business ventures. I congratulate Premier Truck Group on its acquisition of my dealerships. I know they will take great care of my team and provide them with opportunities only a national firm could offer. I’d also like to thank my M&A advisors at Haig Partners for representing me during this sale process. I expect a lot from those around me. Alan Haig, Derek Garber and Erik Haig proved themselves to be honest, hard workers and good communicators and added more value than I could have expected during this transaction. They truly are experts at what they do.” Stephen Dietrich and Brooke Sizer from
Joe Laux began his career in the heavy truck retail industry in 1993 when he joined River States. Under Mr. Laux’s direction, the group grew to five franchised dealerships and five non-franchised parts and service locations. Mr. Laux also expanded the Freightliner dealerships, building three state-of-the-art facilities. Vehicle sales, parts sales and service work grew significantly over the years, which brought him recognition and numerous awards. Notably, Daimler named Mr. Laux “Freightliner Dealer of the Year,” America Truck Dealers nominated him for its “Truck Dealer of the Year” award, Successful Dealer magazine awarded him “Truck Dealer of the Year,” and Deloitte named him nine times to its “Wisconsin 75,” which recognizes 75 of the largest and most successful companies in
When asked about his success, Mr. Laux stated, “I think my time as a long-distance runner in college was good training for business. I learned how to grind, to develop a plan for success and then stick to it to win the race. I loved the competition. Once I became a leader, I learned that I needed to develop talent to help the organization grow. And I liked that part of the business. Nothing gave me greater joy than to see a teammate develop over the years, changing their lives and their families’ lives for the better. And I also enjoy being a student of the business. I was an eager participant at all the 20 groups I attended over the years, and I implemented much of what I learned to help River States evolve into the successful business that it became. Work hard, develop your team and be aware of how you can improve. That’s a good recipe for success in business.”
Mr. Laux also owns two other dealerships that sell Ford, Mack and Isuzu trucks. Those dealerships are being sold in separate transactions over the next few weeks.
“Premier Truck Group continues to grow our footprint to 48 locations throughout the
Alan Haig, President at Haig Partners, stated, “It was a pleasure to work with an entrepreneur like Joe Laux to assist him in the sale of his dealerships. Joe built a very impressive business, and we are glad that Premier Truck Group recognized its value. We know they will do well in these markets and bring some of the winning ways that are embodied throughout the Penske organization. We’ve had the pleasure of representing the owners of 12 Freightliner locations across
About Haig Partners
Haig Partners is a leading buy-sell advisory firm that helps owners of higher-value auto, truck, RV and motorsports dealerships maximize the value of their businesses when they are ready to sell. The team at Haig Partners has advised on the purchase or sale of more than 580 dealerships with a total value of over
View source version on businesswire.com: https://www.businesswire.com/news/home/20240613233405/en/
Transaction Contact:
Alan Haig
Founder and President
Haig Partners
alan@haigpartners.com
(954) 646-8921
Media Contact:
Aimee Allen
Chief Growth Officer
Haig Partners
aimee@haigpartners.com
(603) 933-2194
Source: Haig Partners LLC
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