Automotive retailer AutoNation has entered into an agreement to acquire RepairSmith, a full-service mobile solution for automotive repair and maintenance, headquartered in Los Angeles. RepairSmith has a significant operational footprint in the southern and western United States.
The acquisition of RepairSmith will provide AutoNation’s After-Sales business with another channel to provide service to our existing customer base and introduce additional vehicle owners who have purchased vehicles outside the AutoNation dealer network. Although roughly 80% of vehicles sold by AutoNation receive annual service at franchised dealerships during the first three years of ownership, the percentage falls off dramatically in subsequent years, according to the company.
RepairSmith offers customers the convenience of services and repairs at their home, workplace, or on-site for fleet vehicles. AutoNation will also utilize RepairSmith as a resource for reconditioning and internal services to increase our speed to frontline readiness and expedite vehicle delivery to customers.
The transaction, pursuant to which AutoNation will acquire RepairSmith for $190 million, is expected to close in the first quarter of 2023, subject to customary closing conditions and regulatory approvals.