News: Focus Advisors: Conflicting Forces Impacting Collision Repair
According to an Oct. 12 filing with the SEC, AutoNation, Inc. announced that it entered into a commercial arrangement with Caliber Holdings LLC to transfer ownership of up to 17 of the company’s collision centers to Caliber and enter into a long-term agreement in which certain AutoNation stores will continue to sell parts and refer business to those collision centers following the closing of the transaction.
The 17 collision centers represent less than 0.5% of Auto Nation’s total gross profit for the six months ended June 30, 2021. The transaction is expected to close in the fourth quarter of 2021.
The filing stated that AutoNation remains committed to its collision business and, following the closing of the transaction, will continue to own and operate the largest collision center footprint among its automotive retail peers with 55 collision centers located from coast to coast, including a collision center the company recently acquired in Hilton Head, S.C.