NEW YORK and CHATTANOOGA, Tenn. — MSD Capital L.P., the private investment firm for Michael Dell and his family, and automotive retail industry veteran Jeffrey Rachor have joined together to form MSD Automotive Partners LLC, which will exclusively own and operate premier car dealerships across the United States. Rachor, who recently resigned as CEO of Pep Boys, will serve as chief executive officer of MSD Automotive. MSD Automotive will operate from Chattanooga, Tenn.
"Over the course of his 27-year career, Jeff Rachor has distinguished himself as one of the most reputable executives in the automotive retailing industry," said Howard Berk, a Partner at MSD Capital. "As the former president of Sonic Automotive, a Fortune 300 company and the third largest automotive retailer in the United States, he has successfully built and operated major businesses in this industry, and he possesses an exceptional appreciation of the perspectives of its many important stakeholders — from dealer-owners to general managers to OEMs. Having spent several years evaluating the dealership space, we at MSD are thrilled to partner with Jeff in this new venture."
Rachor said, "I am very excited to be getting back into the auto retailing industry, and I could not have chosen a better partner than MSD Capital. This well-capitalized, family investment firm is able to take a long-term view of its investments — unlike many publicly-traded companies or private equity funds, which are often forced to have a shorter-term orientation. I believe that our new venture has a rare opportunity to leverage our mutual experience and develop the industry’s leading business model that captures all the benefits of scale without sacrificing the entrepreneurial spirit that has always been the foundation of success in auto retailing. Together, we will build MSD Automotive Partners at a measured pace, to ensure that we’re fully aligned with our auto manufacturer partners and other key constituents."
For more information, visit: http://www.msdcapital.com.