LMP Automotive Stock Jumps After Deal To Buy GM, Nissan Dealerships In Texas For $141M

LMP Automotive Holdings Inc LMPX has acquired certain dealerships of General Motors Company GM and Nissan Motor Co Ltd NSANY in Texas, along with the associated real estate, for about $141 million.
The company expects this deal to add about $27 million in adjusted EBITDA or $2.19 per share and $250 million in annualized revenue in 2022.
It expects to close the deal in the fourth quarter of 2021.
The company plans to fund the deal through a combination of cash on balance sheet, $42 million in common stock, and debt financing.
It held $19.4 million in cash and cash equivalents, including restricted cash, as of March 31, 2021.
“This brings us a step closer to our goal of having approximately 100 dealerships in our network by the end of next year,” said CEO Sam Tawfik.
Price action: LMPX shares are trading higher by 4.34% at $15.13 on the last check Monday.