Ron Carter’s Cadillac and Ron Carter’s Hyundai, two Houston-area auto dealership businesses, have been acquired by Ken Garff Enterprises and rebranded as Big Star Cadillac and Big Star Hyundai. The transaction, which was closed by DCG Acquisitions, occurred during a record-breaking year for the M&A company that specializes in the automotive sector.
DCG acquires between 15 and 16 companies annually, on average. The founder and CEO, Dave Cantin, stated, “This year, 28 to 37.” “This year is shaping up to be the best year and the busiest year for mergers and acquisitions that we have ever seen.”
The decision to sell was motivated by succession planning. The Ron Carter group, owned by Rob Abernathy and Donald Hudler, searched for an outside buyer because, as they said, “every dealer would love to have their son or daughter take it over; regrettably that was not the case in this acquisition.”
Cantin described the transaction, which was its 17th this year, as “a substantial acquisition.” “In Texas and Houston, the Ron Carter dealerships are well-known. One of the biggest privately held automotive groups in the nation is the buyer “Auto group Ken Garff.
“The company’s president and CEO, John Garff, is a close friend. They’ve made another sizable buy from us this year. They have been busy investing large sums of money in the sector and purchasing numerous auto dealerships, “added he.
Because of the low loan rate, Cantin added, “it’s a perfect storm for buyer and seller; the cost to conduct an acquisition is the least amount it’s ever been.” While doing so, “Dealerships are making incredible profits month after month after month. It will result in a very high profits multiple when the company is sold.”
He pointed out that auto dealerships are a special kind of franchise and that there aren’t many chances to purchase one. “Even with unlimited resources, it is impossible to own a car dealership. You must be approved by the manufacturer “said he. “A separate sales and service franchise agreement applies to each dealership. You need the manufacturer’s approval.”
When Cantin was in his early 30s, he sold his auto dealerships and transitioned into the M&A industry. In 2017, he closed Prime Motor Group, the second-largest car buy/sell in American history with more than 30 dealerships. According to Cantin’s bio, it is the second-largest automotive transaction after Warren Buffett’s 2015 purchase of the Van Tuyl Group, which later evolved into Berkshire Hathaway Automotive.
The worst thing in the world, according to Cantin, is coming in second to Warren. “He is a fantastic mentor. I admire him more for the money he gives away than the money he earns. A portion of our whole gross profit, or every dollar, is donated to pediatric cancer research. Since I overcame leukemia, it’s really significant to me.”
In This Article...
Ron Carter Cadillac and Hyundai are purchased by Ken Garff Automotive Group, who rebrands them as Big Star Cadillac and Big Star Hyundai.
Since its inception in 1932, Ken Garff has focused on the values of truthfulness, decency, and attentive customer care. These two outstanding dealerships exhibit the same values.
With effect from today, Big Star Cadillac and Big Star Hyundai have been acquired by Ken Garff Automotive Group and are now known as Big Star Cadillac and Big Star Hyundai, respectively.
Allen Paul, regional vice president for the Ken Garff Automotive Group, said, “We have been in business in Houston for more than 14 years and are thrilled to welcome Big Star Cadillac and Big Star Hyundai to our family of great automotive dealerships.” a Customers will discover the same high level of consideration and care provided to every area of their purchasing experience at both locations. a
Awards have been accumulated by Ken Garff dealerships for their outstanding customer service. We constantly strive to put consumer needs first, Paul remarked. Our focus has been constant throughout the past two years’ challenging conditions in the Houston market: consistently treating people properly.
According to Brett Hopkins, CEO of Ken Garff Automotive, from the company’s establishment in 1932, Ken Garff has focused on the values of honesty, integrity, and individualized client care. These two great dealerships exhibit the same values.
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Customers can count on the greatest customer service representatives to make the car-buying process quick and easy.
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After the transactions in Arizona, Colorado, and Wyoming are completed, Ken Garff will own 62 dealerships spread out over numerous states.
One of the six dealerships that Ken Garff Automotive Group hopes to purchase this quarter is Spradley Barr Toyota Cheyenne in Wyoming.
Growing The Ken Garff Automotive Group has already acquired two Texas dealerships and plans to add six more, including five in two additional states.
On Monday, Bob Abernathy and Donald Hudler sold their Ron Carter Cadillac and Ron Carter Hyundai, both located in Friendswood, Texas, southeast of Houston, to Ken Garff Automotive. New names for the dealerships are Big Star Cadillac and Big Star Hyundai.
Allen Paul, regional vice president at Ken Garff Automotive Group, said in a statement: “We have been in business in Houston for more than 14 years and are happy to welcome Big Star Cadillac and Big Star Hyundai to our network of excellent vehicle dealerships.”
The deal between Hyundai and Cadillac was arranged by Tony Karabon of DCG Acquisitions, an organization under the Dave Cantin Group.
In order to expand into Colorado and Wyoming, Ken Garff Automotive intends to acquire five Spradley Barr Automotive dealerships.
The three in Wyoming are Spradley Barr Ford Motors Cheyenne, Spradley Barr Toyota Cheyenne, and Spradley Barr Hyundai Motors Cheyenne, while the two in Colorado are Spradley Barr Ford-Lincoln of Greeley and Spradley Barr Ford Fort Collins.
According to Brett Hopkins, CEO of Ken Garff Automotive Group, “we have been investigating expansion potential in these expanding areas for the previous year.” “These purchases provide our workers with growth prospects and enable us to extend our ethos of treating people right into these lovely towns.”
In addition, Ken Garff Automotive intends to buy Earnhardt Auto Centers’ Rodeo Hyundai in Surprise, Arizona, which is northwest of Phoenix. The sale should also be completed this quarter, and Ken Garff Hyundai Surprise will now be the name of the dealership.
When Ken Garff acquired Earnhardt Kia from Earnhardt Auto Centers in Phoenix on August 9 earlier this month, it expanded into Arizona and added a brand to its portfolio. Ken Garff Kia is the new name of the dealership.
The spokeswoman said that after the purchases in Arizona, Colorado, and Wyoming are completed, Ken Garff will have 62 dealerships spread out over Arizona, California, Colorado, Iowa, Michigan, Nevada, Texas, Utah, and Wyoming.
Where is Friendswood located?
The only permanent Texas town that began as a Quaker colony is Friendswood, which is located in the northwest corner of Galveston County. A group of Quakers led by T. Hadley Lewis and Frank J. Brown founded it in 1895. They were searching for a “promised land” where they could settle a colony of members of the Friends or Quakers religious sect.
Church and school have been the center of Friendswood life since its inception. The two dozen people who lived in Friendswood built a sizable two-story frame building for their church and school after the little church and school building was destroyed in the 1900 Storm. Up until a bigger, stone edifice took its place, the school and sanctuary were housed in the structure known as The Academy.
Friendswood was mostly a small, isolated farming hamlet of Quakers in the 1940s, with fewer than 500 residents. The production and storage of Magnolia figs was essential to the economy. After 1950, as Houstonians learned about the wonderful country setting, the farmlands were transformed into subdivision home-sites, and the neighborhood became more and more into a suburban bedroom community. When the neighborhood incorporated in 1960, it turned into a city.
The 1902 Perry Home, a historic barbershop, the Frank J. Brown Heritage Museum, and the Quaker Marker Trail are all maintained by the Friendswood Historical Society.