Pohlad-Owned Twin Cities Automotive to Buy 4 Luxury Dealerships
Twin Cities Automotive, which operates under the Pohlad Companies umbrella, said Monday that it has signed a purchase agreement to acquire four auto dealerships from St. Louis Park-based LeJeune Investment, Inc.
The dealerships included in the deal are Carousel Audi and Carousel Porsche, both in Golden Valley, and Maplewood Audi and Maplewood Imports. (Maplewood Imports sells both Mercedes-Benz and Porsche vehicles.)
Financial terms of the deal were not disclosed. The transaction is expected to close in the fourth quarter of this year.
Twin Cities Automotive was formed in 2008 with the acquisition of BMW of Minnetonka. The company has bought four more dealerships since—Coon Rapids Chrysler Jeep Dodge Ram, Inver Grove Hyundai, St. Cloud Hyundai, and North Branch Chevrolet—and it doesn’t plan to slow down after the just-announced acquisition closes.
“We have built an M&A strategy around all types of brands in the Twin Cities area,” Twin Cities Automotive Chief Financial Officer Brad Braun told Twin Cities Business on Monday. “We’re very interested in growing through acquisitions.”
Braun said that the company is targeting dealerships within about 100 miles of the Twin Cities and aims to eventually have 10 to 20 percent of local dealerships in its portfolio.
More than 200 LeJeune Investment employees will join Twin Cities Automotive following the planned acquisition, Braun said. Twin Cities Automotive currently employs about 350.
“We are excited about the opportunity to acquire these high-quality brands from LeJeune Investment. Their entire organization has built a strong and successful business, and we look forward to continuing that high level of service and commitment,” Twin Cities Automotive President Jay Hulbert said in a prepared statement. “The Carousel and Maplewood dealerships will complement our existing brands and organization, and we look forward to welcoming their people.”
The Pohlad Companies, based in Minneapolis, dates back to the 1950s and is now led by the second generation of the prominent Pohlad family. Its holdings represent a diverse range of industries, including banking, financial services, entertainment, commercial real estate, retail, automotive, and technology. According to its website, it employs more than 3,500 people throughout 40 markets coast to coast.
Some of the best-known names within the Pohlad Companies’ portfolio include the Minnesota Twins, J.B. Hudson Jewelers, Marquette Financial Companies, Marquette Real Estate Group, United Properties, and NorthMarq.
LeJeune Investment, meanwhile, began in the 1940s with a small business in the steel industry. Its interests have since expanded, and it now focuses primarily on the auto industry’s luxury vehicle category.