Republic Industries Inc. agreed Wednesday to buy four closely held companies that operate 41 auto dealership franchises for $257 million in cash or stock, adding to billionaire Chairman Wayne Huizenga’s holdings in Florida, Texas and Georgia.
Republic said it agreed to buy First Team Automotive Corp. in Orlando and Star Motors in Ft. Lauderdale.
It also will buy Thomas Automotive Group in Houston and Chuck Clancy Ford in Atlanta.
The company, which has agreed to acquire 268 auto franchises with more than $8 billion in revenues in the last 13 months, hopes to generate more sales and cut costs by clustering dealerships in Florida, Houston and Atlanta.
Even so, investors are skeptical about startup losses at its AutoNation USA used-car dealerships and the long-term profitability of auto retailing.
The franchises in the most recent agreement generated more than $1.3 billion in revenues last year.
Republic stock lost 12 cents, to $21.62, on the New York Stock Exchange.
