FORT LAUDERDALE, Fla. , Aug. 23, 2022 /PRNewswire/ — Haig Partners LLC, the leading buy-sell advisory firm to auto, heavy truck and RV dealers in the U.S., served as the exclusive advisor on the sale of a majority stake in John Elway’s Crown Toyota to Swickard Auto Group. John Elway’s Crown Toyota, located in Ontario, CA, has been one of the highest selling Toyota dealerships in the US for many years.
The total value paid for John Elway’s Crown Toyota is believed to be the second highest all-time for a dealership franchise in the U.S.
John Elway’s Crown Toyota is owned by National Football League Hall of Famer John Elway, Mitch Pierce Dan Grubb, and Paxton Gagnet. John Elway’s Crown Toyota regularly sells between 6,000 and 7,000 new vehicles per year. In addition, John Elway’s Crown Toyota has frequently been awarded to the Toyota President’s Cabinet, a status achieved by only 12 dealerships per year. This “best of the best” award reflects excellence in sales performance, customer satisfaction and other operational measures. One key in the store’s success is the “one-price” sales method that John Elway’s Crown Toyota has used for many years that provides pricing transparency and allows a purchase to be completed in less than an hour in many cases.
Mitch Pierce, President and Partner at Elway Dealers, and John Elway, Partner at Elway Dealers issued a joint statement, “It has been a great honor to work with an incredible team to build John Elway’s Crown Toyota into one of the top performing Toyota dealerships. We thank all those who have contributed to its mighty success. But we are not retiring! We continue to own an equity stake in Crown Toyota and we want to continue to build our dealership group in the Mountain States and the Southwest. We enjoy the car business and are investing for the long-term. Many thanks to Alan Haig, who knew the one, very best, counterparty for us out of all the buyers in the market. His knowledge of the landscape of auto retailers is remarkable and his commitment to confidentiality and ability to navigate a smooth and successful transaction were invaluable for us during this process.”
Swickard Auto Group owns 31 dealerships located in California, Oregon, Washington, Alaska and Texas. The group was founded by Jeff Swickard in 2014 and has grown rapidly to become one of the largest privately owned dealership groups in the United States. Swickard Auto Group ranked #64 on the 2021 Automotive News Top 150 Dealership Groups list. It generated $1.6B in revenue on the sale of 31,510 new and used vehicles.
Jeff Swickard stated, “We are excited to acquire this outstanding dealership and have Mitch and John as minority partners. John Elway’s Crown Toyota is well known for its high volume and focus on guest experience, and we plan on keeping it that way. Paxton Gagnet, who has been the GM-Partner for many years, will continue to lead the dealership. I’d like to thank Alan Haig for helping Mitch Pierce, John Elway, and I to put this transaction together. Alan was instrumental in helping us shape the strategic partnership between our teams and providing insight into how we could work collaboratively on this type of opportunity, the first of its kind for our group.”
Alan Haig, President of Haig Partners said, “This is a special transaction for me. I have known Mitch Pierce since 1996 when I came out with Mike Maroone to acquire his Toyota store in Arizona for AutoNation. We have been friends ever since. And Jeff Swickard has also become a close friend in the industry as we have had the opportunity to work on several transactions together. Jeff has developed an impressive management team and built one of the highest performing dealership groups in the US in less than a decade.
“I compliment him on this transaction, which reflects a growing trend towards partnerships in our industry. We are seeing dealers interested in selling some, but not all of their ownership in dealerships or dealership groups. They want liquidity or capital for future growth, but don’t want to sell out completely, so they are willing to take on a partner. And we are seeing new investment firms that are seeking to put large amounts of capital to work inside dealership groups through minority or majority investments, but not full purchases. Given how capital intensive our industry is, our team at Haig Partners believes that this marriage between operating talent and deep-pocketed investment firms will be increasingly common.
“Finally, this transaction demonstrates that Toyota is perhaps the most desired brand in the industry today. Toyota is fully committed to supporting its retailers and is not dabbling in the agency model or other ideas that could harm both the retailer and the OEM. The Toyota dealership business model is superb with high new and used vehicle sales and excellent fixed operations that allow dealers to make strong profits. Plus, customers can choose from a wide variety of top-quality vehicles. Toyota’s long-term commitment to the health of the dealer is a key reason that Toyota sells more vehicles than any other OEM. It’s truly a win-win-win for the customer, the dealer and the OEM.”
The team at Haig Partners has been involved in the purchase or sale of 67 dealerships in California and 33 Toyota stores nationwide, far more than any other team. Haig Partners has advised on the sale of 31 dealerships nationwide so far in 2022.
James Barone of Ferruzzo and Ferruzzo provided legal counsel to Elway Dealers and Michael Fletcher of Tonkon Torp provided legal counsel to Swickard Auto Group.
About Haig Partners
Haig Partners LLC helps dealers to maximize the value of their businesses when they are ready to sell. The team at Haig Partners has unmatched experience with executives from leading retail dealer groups and financial institutions. They have advised on the purchase or sale of more than 575 dealerships for over $9.0 billion, more than any other firm. Haig Partners leverages its expertise and relationships to lead clients through a confidential and customizable sales process that also maximizes the value of their businesses. They author the Haig Report, the leading industry quarterly report that tracks trends in auto retail and their impact on dealership values, and are co-author of NADA’s Guide, “Buying and Selling a Dealership.” For more information, visit www.haigpartners.com.
Transaction Contact:
Alan Haig, Founder and President
Haig Partners
[email protected]
(954) 646-8921
Media Contact:
Aimee Allen, Director of Marketing and Business Development
Haig Partners
[email protected]
(603) 933-2194
SOURCE Haig Partners
