Growing Hudson Automotive Group plans to acquire its first Mercedes-Benz dealerships with the purchase of three of the luxury stores in Ohio and Kentucky.
Hudson Automotive of Charleston, S.C., plans to buy Mercedes-Benz of Louisville in Kentucky and Mercedes-Benz of Cincinnati and Mercedes-Benz of West Chester, both in Ohio, from Peterson Automotive Collection. The transaction is expected to close in mid-September, Hudson Automotive CEO David Hudson said.
Peterson Automotive Collection is owned by David Peterson, who is retiring. Ed Keady, Peterson Automotive Collection’s operating partner who has a minority stake in the three stores, will stay on with Hudson Automotive in his current role and will also keep his minority stake, Hudson noted.
“We’re effectively buying the dealership and he’s [Keady] retaining a piece of the deal,” Hudson said.
Louisville Business First reported on the transaction last week.
“Mercedes is a great brand,” Hudson told Automotive News. “We really liked those markets, both Louisville and Cincinnati. Mercedes has certainly been on our radar for many years and [we] finally had the right opportunity with these. David Peterson was a great seller and is retiring. It kind of checked all the boxes for us.”
Mercedes-Benz of Cincinnati and Mercedes-Benz of West Chester will be Hudson’s first dealerships in the Cincinnati market and will boost its Ohio store count to three. Mercedes-Benz of Louisville will be Hudson Automotive’s first dealership in the Louisville market and second store in Kentucky.
“We like that part of the world and [it] fits in our footprint,” Hudson said.
Hudson Automotive also has dealerships in Alabama, Tennessee, South Carolina, North Carolina, Louisiana and Georgia. Once the transaction closes, Hudson Automotive will have 36 rooftops, including a used-vehicle store. In June, Hudson Automotive bought Hoover Toyota in Alabama.
Peterson Automotive Collection bought the two Ohio stores in 2016. The group in 2014 sold Mercedes-Benz of Encino in California. In 2007, Peterson Automotive sold Mercedes-Benz of Calabasas in California to Sonic Automotive Inc.
David Peterson also owned Mini of Louisville in Kentucky but closed the dealership in May 2019. Peterson, a past chairman of the Mini dealer council, sued BMW of North America in April 2019, alleging that BMW breached its dealership agreement by failing to promote and develop the Mini brand. That lawsuit continues.
Pinnacle Mergers & Acquisitions is representing Peterson in the Ohio and Kentucky transaction. Hudson is not using a broker.