News Summary
In a landmark $700 million deal, Hudson Automotive Group has agreed to purchase All Star Automotive Group, Louisiana’s largest dealership network. This acquisition will expand Hudson’s presence in the state and includes significant real estate assets. The transaction is set to finalize in the fourth quarter of 2025, pending manufacturer approval. This sale reflects ongoing consolidation in the automotive industry, shifting dealership ownership dynamics. Matt McKay, All Star’s co-founder, has played a pivotal role in transforming the company since its inception.
New Orleans, Louisiana — Matt McKay, the co-founder of All Star Automotive Group, has agreed to sell his expansive dealership network to Hudson Automotive Group for approximately $700 million. This landmark transaction is recognized as a record-setting deal in the state of Louisiana, surpassing the previous record of around $280 million set by the Brandt Group.
All Star Automotive Group operates 14 car brands across 13 locations, primarily situated along a well-known car dealer’s row on Airline Highway in Baton Rouge, Denham Springs, and Prairieville. The dealership features prominent brands such as Toyota, Lincoln, Genesis, and Hyundai. This sale also includes nearly $200 million in real estate owned outright by All Star Automotive Group.
The total valuation of All Star is estimated to include around $80 million attributed to the brand itself, with the remainder coming from automobile inventory and various other tangible assets. Hudson Automotive Group, based in Charleston, South Carolina, will acquire the operational assets and real property associated with All Star.
The completion of the deal is contingent upon approval from vehicle manufacturers, who hold a right of first refusal in dealership sales. This provision allows manufacturers to either match the offer or introduce another buyer, which is a common practice in the automotive industry. Hudson Automotive Group executives have recently visited All Star locations, communicating their intent to retain around 700 employees, including sales personnel, administrative staff, mechanics, and warehouse workers.
David Hudson, the CEO of Hudson Automotive Group and a third-generation dealership owner, views this acquisition as a strategic move to expand their footprint in Louisiana. Before this transaction, Hudson operated only one dealership in the state. The purchase will not only make Hudson Automotive the largest car dealer group in Louisiana but will also provide them with additional Chevrolet dealerships and numerous other outlets across the state. Hudson expressed confidence in maintaining solid relationships with car manufacturers and does not anticipate losing any of the All Star dealerships through the manufacturing approval process.
The transaction is expected to finalize in the fourth quarter of 2025. This deal marks a pivotal moment in the automotive industry, as it reflects a continuing trend of consolidation within the sector. Market analysts project that the number of automobile dealership groups in the United States may decrease to approximately 6,000 due to ongoing consolidations.
Matt McKay, age 70, began his career in the automotive sector as a teenage salesperson and has since transformed All Star Automotive into Louisiana’s largest dealership group. Initially, he entered the industry by partnering with attorney John Noland to purchase a Ford showroom in Gonzales. McKay became the sole owner of All Star in 2010 after buying out Noland. While achieving significant success in the industry, McKay has maintained a low profile and has largely avoided public attention or promotional activities.
McKay and Noland are also recognized for their philanthropic efforts, particularly in education and workforce training initiatives. In 2017, they opened the McKay Automotive Technology Center, a $51 million training facility aimed at preparing individuals for high-tech automotive careers.
The trend of family-owned dealerships being sold to larger corporate groups rather than being passed down to the next generation is increasingly observed across the U.S. automotive industry. As consolidation continues, it raises questions about the future landscape of automotive retail in the country.
This monumental sale not only exemplifies the evolution of dealership ownership in Louisiana but also heralds a shift in how automotive businesses may operate moving forward.
Deeper Dive: News & Info About This Topic
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