America’s Car-Mart, Inc. to Acquire Taylor Auto Credit from Keith and Marcia Hagler
06 December 2022 - 2:00AM
America’s Car-Mart, Inc. (NASDAQ: CRMT) today announced that its
subsidiary, America’s Car Mart, Inc. (the “Company”), has entered
into a definitive agreement to purchase the ongoing dealership
assets of Credit-Line, Incorporated and Loanco., Inc., both Texas
corporations doing business as Taylor Auto Credit (“Taylor Auto
Credit”). As a result, the Company will be entering a new market in
Taylor, Texas (Northeast of Austin). The existing finance
receivables will be excluded from the transaction and will be
collected by the seller. The Company expects to close the agreement
prior to December 31, 2022.
“As previously communicated, we expect
acquisitions to continue to generate outstanding returns for our
shareholders, an exit strategy for owner-operators, and future
growth opportunities for their associates,” said Jeff Williams,
Chief Executive Officer. “In our markets, the best competitors have
generally been a subset of the owner-operated dealerships - those
operated by individuals who have chosen not to borrow excessively,
focus on getting a sound automobile to their customers on
reasonable terms, and provide both friendly service and disciplined
collections. We believe we have developed a successful acquisition
template which works for both parties.”
“We are excited to be adding the Taylor, Texas
area to our footprint and expanding our customer base in a thriving
and growing market. Samsung is currently building a $17 billion
semiconductor plant near Taylor, expected to bring 1,800 jobs to
the area,” said Mr. Williams. “Taylor Auto Credit brings a rich
history of serving customers with a talented team of associates
that we welcome into the Car-Mart family. We are excited for the
opportunities to grow our business in this market. In addition, we
also expect to close on our previously announced
acquisition of the second Smart Auto location in Knoxville,
Tennessee at the end of December 2022 as well.”
“Taylor Auto Credit, owned and operated by Keith
and Marcia Hagler, has been in business since 1990. Their values
align perfectly with ours. We are looking forward to getting to
know customers and to continue their great history of ‘keeping them
on the road’,” added Mr. Williams. “They will be a fantastic
addition to our business and will help us build a better future for
the Company, our associates, and our customers,” said Mr.
Williams.
“Taylor Auto Credit has called Taylor, Texas
home for over 30 years. With that being said, we are elated to
announce America’s Car-Mart’s acquisition of Taylor Auto Credit.
This acquisition is exciting news for Taylor, Texas and all
surrounding areas,” said Keith Hagler. “Our goal at Taylor Auto
Credit has always been to keep our customers on the road, while
providing the best customer experience from day one; America's
Car-Mart will continue to do just that. My wife, Marcia, and I are
thankful that we have the opportunity to join one of the largest
publicly held automotive retailers in the United States in our
industry. After 30 years, seeing the end of Taylor Auto Credit is
sad, but giving our team a future is the main priority. America's
Car-Mart is superior and will provide a better future for all
associates and future customers. We are thankful for the leadership
within Car-Mart; they have a heart for people which has resulted in
success and will continue to do so for generations to come. We are
thankful for this opportunity and ready for what lies ahead.”
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 specializes in the sale of quality, pre-owned
vehicles, and features flexible used car financing options for
customers with bad credit, no credit, repossessions or even past
bankruptcy and 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 acquisitions of Taylor Auto Credit, Smart Auto 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 ability to successfully
identify and complete new acquisitions on conditions that are
favorable to the Company;
- the possibility that an
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 a 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.
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.
Contacts: Jeff Williams, CEO at (479) 464-9944
or Vickie Judy, CFO at (479) 464-9944
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