FORT LAUDERDALE, Fla. — National car retailer AutoNation Inc. is making a $190 million bid to buy RepairSmith Inc., the Los Angeles-based mobile automotive repair and maintenance provider with operations in eight states throughout the U.S.
The deal, disclosed Dec. 12, is expected to close in the first quarter of 2023, subject to customary closing conditions and regulatory approvals.
AutoNation — the nation's largest new vehicle dealership with over 260,000 vehicles sold in 2021 — said the deal fits with its strategy of becoming the nation's "most comprehensive provider of transportation solutions," meeting the mobility needs of customers through a range of products and services.
"By providing an expansion of our group's capabilities, we not only begin to truly leverage our scale, but most importantly offer an expanded range of products and services that will increase both customer loyalty and deepen our share of our customers' household-related mobility spend," AutoNation said in a written statement.
"RepairSmith is the next step in our plan," AutoNation CEO Mike Manley said in a written statement. "It expands AutoNation's ability to penetrate the extensive after-sales service market and conveniently respond to our customers' needs by broadening the reach of our existing after-sales network."
Founded in 2018 with financial backing from Daimler A.G., RepairSmith offers car repair and maintenance service, along with online pricing and scheduling, with a choice of service locations — at home, at work or at a service shop. It lists operations in multiple cities in Arizona, California, Florida, Georgia, Nevada, Oregon, Texas and Washington.
AutoNation said RepairSmith will service its existing customers and those who bought vehicles outside the AutoNation dealership network. The retailer noted that although about 80% of vehicles it sells are serviced annually at franchised dealerships in the first three years of ownership, that percentage drops sharply after the three-year mark.
Most repairs/maintenance work performed by RepairSmith are covered by a 12-month/12,000-mile guarantee.
Story includes information provided by Automotive News, a Crain Communications Inc. publication.