Kerrigan Advisors Represents Bohn Brothers Automotive Group in Sale of Audi New Orleans to Sonic Automotive

Rhea-AI Summary

Kerrigan Advisors has facilitated the sale of Audi New Orleans, Louisiana's #1 Audi dealership, from Bohn Brothers Automotive Group to Sonic Automotive (NYSE: SAH). The dealership, located in Metairie's prime automotive market, represents Sonic's first franchised dealership in Louisiana. The sale marks Kerrigan Advisors' 282nd dealership sold, 132nd franchise sold in the Southern region, and 69th luxury franchise sold since 2014.

The Magna Society award-winning Audi New Orleans commands 1/3 of Audi's market share in Louisiana and exceeds the national Audi market share by 16%. The transaction aligns with the trend of large automotive groups acquiring high-volume dealerships, as reported in Kerrigan's Third Quarter 2024 Blue Sky Report.

Positive

• Sonic Automotive expands into Louisiana market with acquisition of #1 Audi dealership
• Dealership controls 1/3 of state's Audi market share
• Location in prime retail area with state-of-the-art facilities
• Dealership exceeds national Audi market share by 16%

Negative

• None.

Insights

Financial Analyst

The acquisition of Audi New Orleans by Sonic Automotive (NYSE: SAH) represents a strategic expansion into Louisiana's largest metropolitan market. This high-volume luxury dealership, commanding 33% of Audi's state market share, aligns with the trend of large automotive retailers pursuing premium dealerships in affluent markets. The New Orleans location, with its 18 million annual tourists and population of 1.2 million, offers significant revenue potential. The dealership's premium location and market outperformance (exceeding national Audi market share by 16%) suggests this acquisition will positively impact Sonic's luxury segment performance and regional footprint.

Market Research Analyst

This acquisition demonstrates the continuing consolidation trend in auto retail, particularly in the luxury segment. New Orleans presents attractive market demographics with its robust tourism sector, corporate presence and healthcare institutions driving economic growth. The dealership's strategic location in Metairie, a prime retail area, combined with its market-leading position and Magna Society recognition, indicates strong operational fundamentals. The transaction reflects larger industry dynamics where well-capitalized public groups are targeting high-performing luxury franchises in growing metropolitan areas to achieve economies of scale and enhance market presence.

Sale of New Orleans’ #1 dealership marks Kerrigan Advisors’ 282^nd dealership sold, 132^nd franchise sold in the Southern region and 69^th luxury franchise sold since 2014; sale underscores trend of largest auto groups acquiring higher volume dealerships, as reported in Kerrigan Advisor’s Third Quarter 2024 Blue Sky Report®

NEW ORLEANS--(BUSINESS WIRE)-- Kerrigan Advisors, the premier sell-side advisor and thought partner to auto dealers nationwide, represented New Orleans-based Bohn Brothers Automotive Group in the sale of its Audi New Orleans dealership, the #1 Audi dealership in Louisiana, to Charlotte, NC-based Sonic Automotive Group (NYSE: SAH), one of the largest automotive retailers in the United States.

“We are pleased to have completed our second transaction with Bohn Brothers, and their second luxury franchise in New Orleans’ most desirable automotive market, Metairie,” said Gabe Robleto, Senior Vice President, Sell-Side Advisory at Kerrigan Advisors. “It was an honor to represent the Bohn family in the sale of their top luxury franchise and to support its smooth transition to Sonic Automotive, marking the establishment of Sonic’s first franchised dealership in the state of Louisiana.”

Bohn Brothers Automotive Group was founded in 1924 and, over the years, the group has expanded its footprint operating Audi New Orleans, Audi Lafayette (previously), Toyota of Slidell and Hyundai Genesis of Metairie. Audi of New Orleans is ideally located off the heavily trafficked North Causeway Boulevard near Lake Pontchartrain, a major New Orleans retail area with state-of-the-art real estate. A Magna Society award-winning dealership, Audi New Orleans, commands 1/3 of Audi’s market share in the state, contributing significantly to New Orleans’ strong share of the national Audi market, which it exceeds by 16%.

“Thank you to Gabe Robleto, and the entire team at Kerrigan Advisors, for their outstanding professionalism as they once again provided us with such sterling support throughout this transaction, and for their expert assistance in helping facilitate the transition to the Sonic team. Kerrigan Advisors proved once again that they are the best in the business,” said Donny and Scott Bohn, Co-Owners of Bohn Brothers Automotive Group. “We are also very grateful to our employees and the community for all their support over the years – we know you will be in excellent hands with the world class team at Sonic.”

With a population of 1.2 million, New Orleans is Louisiana's largest and most significant metropolitan area. It boasts a vibrant historic downtown, the iconic French Quarter, and is home to several professional sports teams. It is also a major tourist destination welcoming nearly 18 million visitors in 2023. An economic powerhouse bolstered by the presence of major corporations, top higher education institutions, and a vast network of healthcare institutions, New Orleans is home to a large economy and growing workforce.

“This sale is another example of how the largest dealership groups continue to leverage their strong balance sheets to achieve greater scale through the acquisition of high-volume dealerships, as noted in our Third Quarter 2024 Blue Sky Report,” said Erin Kerrigan, Founder & Managing Director of Kerrigan Advisors. “It was a true privilege to work on a second transaction with Donny, Scott and Van Bohn and to secure the ideal buyer in Sonic Automotive. The Kerrigan team is proud that our customized, confidential sell-side process, coupled with our commitment to superior client service, has once again yielded the best results for our client.”

The completion of Bohn Brothers’ Audi New Orleans transaction represents Kerrigan Advisors’ 69^th luxury franchise sold and its 132^nd franchise sold in the South since 2014.

Stephen Dietrich and Brooke Sizer of Holland & Knight served as legal counsel to Bohn Brothers Automotive Group. Crowe LLP was the seller’s accountant.

About Kerrigan Advisors

Kerrigan Advisors is the leading sell-side advisor and thought partner to auto dealers nationwide. Since its founding in 2014, the firm has led the industry with the sale of over 280 dealerships representing over $9 billion in client proceeds, including the third largest transaction in auto retail history – the sale of Jim Koons Automotive Companies to Asbury Automotive Group. The firm advises the industry’s leading dealership groups, enhancing value through the lifecycle of growing, operating and, when the time is right, selling their businesses. Led by a team of veteran industry experts with backgrounds in investment banking, private equity, accounting, finance and real estate, Kerrigan Advisors does not take listings, rather they develop a customized sales approach for each client to achieve their personal and financial goals. In addition to the firm’s sell-side advisory services, Kerrigan Advisors also provides a suite of consulting and investor services including growth strategy, market valuation assessments, capital allocation, transactional due diligence, open point proposals, operational improvement and real estate due diligence.

Kerrigan Advisors monitors conditions in the buy/sell market and publishes an in-depth analysis each quarter in The Blue Sky Report®, which includes Kerrigan Advisors’ signature blue sky charts, multiples, and analysis for each franchise in the luxury and non-luxury segments. To download a preview of the report, click here. The firm also releases monthly The Kerrigan Index™ composed of the seven publicly traded auto retail companies with operations focused on the US market. The Kerrigan Auto Retail Index is designed to track dealership valuation trends, while also providing key insights into factors influencing auto retail. To access The Kerrigan Index™, click here. To read the 2023 Kerrigan Dealer Survey, click here. To read the 2024 Kerrigan OEM Survey, click here. Kerrigan Advisors also is the co-author of NADA’s Guide to Buying and Selling a Dealership.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241213853716/en/

Kerrigan Advisors Media Contact:

Melanie Webber (melanie@mwebbcom.com), mWEBB Communications, 949-307-1723

Source: Kerrigan Advisors

FAQ

What is the significance of Sonic Automotive (SAH) acquiring Audi New Orleans?

This acquisition marks Sonic Automotive's first franchised dealership in Louisiana, expanding their market presence with the state's #1 Audi dealership, which controls one-third of Louisiana's Audi market share.

How does Audi New Orleans perform compared to national averages?

Audi New Orleans exceeds the national Audi market share by 16% and is a Magna Society award-winning dealership that commands one-third of Audi's market share in Louisiana.

Where is the newly acquired SAH Audi dealership located?

The dealership is located off North Causeway Boulevard near Lake Pontchartrain in Metairie, a major New Orleans retail area.

How many dealerships has Kerrigan Advisors sold in the Southern region?

Kerrigan Advisors has sold 132 franchises in the Southern region and 69 luxury franchises since 2014, with this being their 282nd dealership sale overall.