LMP Automotive Holdings, Inc. (NASDAQ: LMPX) disclosed Monday that it has inked an acquisition agreement. As per the acquisition agreement, the firm will purchase Chrysler Dodge Jeep Ram dealership in New York along with the related real estate. The firm will disclose that it will generate nearly $80 million in yearly revenue and $2.6 million in adjusted EBITDA.
It has been revealed that in this acquisition the purchase price is nearly $11 million for goodwill and $8.2 million for the related real estate. It has been anticipated that the amount is to be financed through a combination of cash on LMP’s balance sheet, $5.6 million in common stock, and debt financing.
Shares of LMP Automotive Holdings went up 2.49% as the firm has gained +0.41 at the time of writing on Monday. The firm disclosed that the acquisition will add nearly $2.6 million in adjusted EBITDA or $0.26 per share in 2022. It has been anticipated that the deal will be executed in the Q4 of this year.
As per LMP COO, this deal will further increase its management team and Northeast footprint. The firm is planning to continue increasing aggressively in this region as the firm is witnessing a record amount of interest in its dealer partner model. Furthermore, this acquisition along with other purchases would bring LMP’s total franchise and dealership tally to 26 and 22, respectively.