Heritage Capital Group Advises Center Subaru on Acquisition

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Apr 28, 2021, 08:38 ET

JACKSONVILLE, Fla., April 28, 2021 /PRNewswire/ -- Center Subaru, a full-service Subaru dealer located in Torrington, CT, has been acquired by GMST, LLC (Gengras Motors), a third-generation auto dealership owner group in Connecticut and Massachusetts. Heritage Capital Group, an investment banking and financial advisory firm with offices in Jacksonville, FL and Savannah, GA, acted as exclusive financial advisor to Center Subaru. Mac Holley, Principal and advisor to Center Subaru, commented, "Center Subaru had a strong market share and a long history in its area, with a solid reputation for customer service. The owner was able to achieve his goals in exiting the business he had built for many years, and I was honored to represent him in the transaction."

Center Subaru has been acquired by GMST, LLC.

Further details of the Center Subaru transaction are available here. Transaction multiples in this industry are largely brand driven, with average EBITDA multiples ranging from 8X - 10X for luxury brands such as Porsche, Lexus, Mercedes-Benz, and BMW to 5.5X - 7X for Audi, Toyota, Honda, and Subaru to 3X - 4.5X for brands such as Chevrolet, Ford, Buick GMC, and Hyundai. Additionally, location, performance, and other factors can drive valuations above or below these averages.

Center Subaru was founded in 1989 and purchased by Phil Porter in 1994. Center Subaru offers a variety of new and used cars, trucks, vans, and sport utility vehicles, as well as a service center that provides repairs, maintenance, inspections, and parts. The Company also offers financing and leasing services.

Gengras Motors is headed by brothers E. Clayton "Chip" Gengras Jr. and Jonathan Gengras. The Company began in East Hartford in the 1930s when E. Clayton Gengras opened his first Ford dealership. His son, E. Clayton Gengras Jr., opened a Mercedes dealership in 1970. Gengras Motors continues to be a family-owned and operated business with 13 franchises in eight locations.

Heritage Capital Group is a merger & acquisition advisory firm with offices in Florida and Georgia. It provides objective advice to private companies in the areas of mergers, acquisitions and divestitures, exit planning, business valuations, debt and equity capital raises, corporate restructurings, and financial and strategic advisory services.

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SOURCE Heritage Capital Group