LMP Automotive Holdings Inc. stated the vendor in a proposed transaction during which it was to purchase 5 import dealerships in Texas will maintain a $1.5 million deposit per phrases of the contract, which was terminated this week.

The Fort Lauderdale, Fla., publicly traded firm stated in a Thursday regulatory submitting that its asset buy settlement to purchase dealerships from Steve McGavock was terminated Monday. In a information launch, LMP CEO Samer Tawfik stated the termination occurred “because of the expiration of the time limit deadline.”

In September, LMP introduced the deliberate acquisition of 4 Nissan dealerships in Abilene, Amarillo, San Marcos and Lubbock and an Infiniti retailer in Lubbock from McGavock, principal of McGavock Auto Group. The deal additionally included actual property.

LMP stated then that the transaction, predicted to generate about $592 million in annual income, was slated to shut within the fourth quarter.

The corporate in a September information launch stated it might pay about $62.5 million in goodwill for the dealerships and $55 million for actual property. It stated it might pay for that acquisition via money and debt, with as much as $6.25 million paid for in widespread inventory. However a regulatory submitting that month, which included a duplicate of the settlement, pegged the acquisition value at $61.5 million, of which as much as $10 million may very well be paid for with widespread inventory.

McGavock and a consultant from Nationwide Enterprise Brokers, the Irvine, Calif., buy-sell agency that dealt with the transaction, couldn’t instantly be reached for remark.

It is the newest terminated acquisition for LMP, which early final yr closed on its first franchised dealership acquisitions and entered into quite a few contracts to purchase dealerships. It has simply greater than a half-dozen rooftops in its portfolio.

In a January regulatory submitting, LMP stated its deliberate acquisition of a Hyundai dealership in West Virginia additionally was terminated, on Dec. 31, based on phrases in its buy settlement. LMP in that submitting stated “the corporate didn’t incur any materials termination penalties pursuant to such termination.”

By the primary three quarters of 2021, LMP generated $1.1 million in web earnings, together with $4.77 million within the third quarter. As of Sept. 30, LMP had $18.8 million in money, although it famous greater than $10.8 million in money was restricted.

The corporate, which has aspirations to roll up dozens of dealerships, has introduced seven different acquisitions that it had stated had been slated to shut within the fourth quarter. In a Thursday information launch, LMP’s Tawfik stated the corporate expects starting in February to “shut considerably all of the remaining seven acquisitions beneath contract within the first quarter of this yr on a rolling foundation, topic to customary closing circumstances, financing and producer approvals.”

In late December, Tawfik stated in a information launch that LMP had “engaged Financial institution of America” to assist it refinance debt.

Tawfik, on this week’s assertion, stated his firm is continuous to work with “potential lenders to offer the required debt financing to consummate these acquisitions.”

Individually this week, LMP stated it might pay $29 million as a part of an settlement to purchase property in Elmsford, N.Y., to relocate and develop its White Plains Chrysler-Dodge-Jeep-Ram dealership in New York. It acquired an 85 p.c stake in that dealership in October. The corporate stated the property acquisition is anticipated to shut within the second quarter, and it expects to be working from the location by the fourth quarter.

“It is a trophy property positioned in among the best and highest trafficked areas in Westchester County,” LMP COO Richard Aldahan stated in a press release. “The property offers for a major modernized enlargement to service bays, showroom and added parking for a whole bunch of extra automobiles.”