LMP To Buy 85% Interest In Alan Jay Automotive And Associated Real Estate For ~50M

LMP Automotive Holdings Inc LMPX has agreed to acquire 85% interest in the Alan Jay Automotive Network, a 12-dealership group in Florida, along with the associated real estate, for about $50 million.
Alan Jay Automotive Network generates approximately $345 million in annualized revenue and $18.3 million in adjusted EBITDA.
The company expects the deal to add about $18.3 million in adjusted EBITDA or $1.38 per share in 2022.
The transaction is expected to close in Q4 FY21. Upon closing the deal, Alan Jay Wildstein, the CEO of Alan Jay Automotive, will be Regional Vice President at LMP, Partner, and Dealer Operator of the acquired dealership group.
The company plans to fund the deal through a combination of cash on the balance sheet, up to $25 million in common stock, and debt financing.
LMP held $24.3 million in cash and equivalents as of June 30, 2021.
Price Action: LMPX shares closed higher by 0.25% at $16.22 on Friday.