New- and used-car retailer Sonic Automotive (NYSE:SAH) announced yesterday that it's expanding its presence in Denver by purchasing two car dealerships in the area, bringing its total in the city to four.
The new franchises include luxury-car dealers BMW and Mercedes-Benz, which are expected to add approximately $200 million in revenue during Sonic Automotive's first year of operation. It already operates a Toyota dealership and a General Motors Cadillac dealership.
The car manufacturers themselves still need to approve of the acquisition, but it is expected that the purchase will be completed by the end of July.
Sonic Automotive is a Fortune 500 company and is one of the largest automotive retailers in the United States. It had more than $8.5 billion in revenues over the last 12-month period ending March 31.
Fool contributor Rich Duprey has no position in any stocks mentioned. The Motley Fool recommends BMW, Ford, and General Motors and owns shares of Ford. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.