ROGERS, Ark., Dec. 01, 2023 (GLOBE NEWSWIRE) -- America's Car-Mart, Inc. (NASDAQ: CRMT) ("Car-Mart" or the "Company") today announced that its subsidiary, America's Car Mart, Inc., has entered into a definitive agreement to purchase the ongoing dealership assets of Allied Union Group, Inc., an Arkansas corporation doing business as Central Auto Sales. The existing finance receivables will be excluded from the transaction and will be collected by the seller. Car-Mart expects to close the transaction later this month.
Mike and Stacey Steven-Assheuer founded Central Auto Sales in Hot Springs, Arkansas, in 1996. The acquisition of Central Auto Sales will enhance Car-Mart's presence in Hot Springs and expand its reconditioning capabilities.
"This transaction is consistent with our strategy to grow the business through acquisitions, delivering exceptional returns for our shareholders while providing exit opportunities for owner-operators and offering future growth prospects for their associates," said Douglas Campbell, Chief Executive Officer. "Mike and Stacey have created a robust business that provides affordable, high-quality vehicles and exceptional customer service. We warmly welcome them and their committed team of associates to the Car-Mart family."
"Selling our business was a difficult decision, and we have turned down several offers in the past. When America's Car-Mart approached us, we were intrigued by the synergies and similarities between our companies, and we knew it was the right fit," said Stacey Steven-Assheuer. "Car-Mart shares our goal of providing excellent customer service, offering growth opportunities, and investing in our team members who are the heart of our organization."
"Stacey and I are excited to start a new journey with Car-Mart and create a brighter future for our company and associates," added Mike Steven-Assheuer. "Car-Mart brings strength to the industry and a commitment to excellence for our customers, employees, and community. We are grateful to be joining one of the largest publicly traded automotive retailers in the United States."
"We are thrilled to welcome Central Auto Sales to the Car-Mart network of dealerships and integrate their 15-lift on-site maintenance facility," said Mike Robortaccio, Vice President of Mergers & Acquisitions. "After 25 years in the automotive business, Mike and Stacey's expertise will be invaluable to Car-Mart as we enhance our vehicle reconditioning and warranty servicing abilities."
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 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 growth and operating performance, including with respect to the Company's acquisition of Central Auto Sales and other potential future acquisition opportunities, 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 the acquired business operate;
- the ability to promptly and effectively integrate the businesses of the Company and the acquired company;
- the reaction to the transaction of the companies' customers, associates and counterparties; and
- diversion of management time on acquisition-related issues; and
- the ability to successfully identify and complete new acquisitions on conditions that are favorable to the Company.
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.
