Kerrigan Advisors Facilitates Sale of Four Kia and Hyundai Dealerships to Lithia Motors
Kerrigan Advisors has represented Gossett Motor Cars, the largest privately owned automotive dealership group in Memphis, Tennessee, in the sale of four Kia and Hyundai dealerships to Lithia Motors (NYSE: LAD). The transaction includes Gossett Kia, Gossett Hyundai, Gossett Kia South and Gossett Hyundai South, strengthening Lithia Motors’ position in the Memphis automotive retail market and marking another significant development in the US dealership acquisition sector.
The transaction represents Kerrigan Advisors’ 474th franchise sale since the firm was founded in 2014. It also marks the company’s 156th franchise sale in the southern United States, highlighting its established position in automotive dealership mergers and acquisitions across the region.
The sale comes amid continued consolidation in the US automotive retail industry, where large dealership groups are expanding their geographic reach and brand portfolios through strategic acquisitions. For Lithia Motors, the purchase increases its presence in Memphis by more than twofold. For Gossett Motor Cars, the transaction allows the family-owned business to concentrate on its remaining dealerships while continuing its long-standing involvement in the regional automotive market.
Four Dealerships Strengthen Lithia’s Memphis Operations
The four dealerships included in the transaction represent a substantial addition to Lithia Motors’ operations in Memphis. The stores operate under two of the automotive industry’s leading mainstream brands, Kia and Hyundai, both of which have demonstrated strong sales performance and growing consumer demand in recent years.
The dealerships are located along Covington Pike and Mt. Moriah Road, two prominent automotive retail corridors in the Memphis metropolitan area. These locations are recognized as high-volume automotive sales markets, making the acquisition strategically important for a buyer seeking to expand its dealership network in the region.
The transaction includes two of the three Kia dealership locations and two of the four Hyundai dealership locations in the Memphis metropolitan statistical area. Bringing these four stores under Lithia Motors’ ownership provides the company with a larger presence across the local market and an opportunity to build on its existing customer base.
The acquisition also gives Lithia access to established dealership operations, experienced employees and existing customer relationships. Such assets are important in automotive retail, where local market knowledge, service operations, customer retention and manufacturer relationships contribute to long-term business performance.
Although the transaction transfers ownership of the four Kia and Hyundai stores, Gossett Motor Cars will continue operating its remaining dealerships. The company’s decision reflects a strategic adjustment to its portfolio rather than a complete withdrawal from the Memphis automotive market.
Gossett Motor Cars Continues Its Family-Owned Legacy
Founded in 1985 by Al Gossett, Gossett Motor Cars has served customers in Memphis for more than four decades. The company developed into one of the region’s most prominent privately owned automotive dealership groups through its presence across multiple vehicle segments and manufacturer brands.
Al Gossett, the company’s president, chief executive officer and founder, leads the organization alongside his brother David and his son Brian. The family’s continued involvement has helped establish the dealership group as a significant participant in the Memphis automotive retail industry.
Before the sale, Gossett Motor Cars maintained a diversified dealership portfolio that included Porsche, Audi, Volkswagen, Chrysler, Dodge, Jeep, Ram, Fiat, Mitsubishi, Genesis and Infiniti franchises. This broad selection of brands allowed the company to serve customers across luxury, mainstream passenger vehicle and utility vehicle categories.
The sale of the four Kia and Hyundai dealerships will enable Gossett Motor Cars to focus its management resources on its remaining eight dealerships. Managing a diversified dealership group requires investment in personnel, facilities, customer service, vehicle inventory and manufacturer standards. Concentrating on a smaller portfolio can provide the company with greater flexibility in allocating capital and supporting its remaining operations.
Al Gossett described the transaction as a strategic decision for the business. He also expressed confidence in Lithia Motors as the new owner of the four dealerships, citing the buyer’s recent expansion in Memphis and its suitability as a long-term partner for the stores.
Gossett thanked the dealership group’s employees for their contributions and acknowledged Kerrigan Advisors for guiding the company through the transaction. He highlighted the advisory firm’s professionalism, discretion and commitment to the family’s interests throughout the sale process.
The transaction illustrates how established family-owned dealership groups can use mergers and acquisitions to reshape their portfolios while preserving their presence in the markets where they have operated for decades.
Lithia Motors Expands Its Automotive Retail Network
Lithia Motors is a major US automotive retailer headquartered in Medford, Oregon. According to the transaction announcement, the company ranked No. 123 on the 2026 Fortune 500 list and reported $37.6 billion in revenue for 2025.
The acquisition of the four Memphis dealerships represents a significant expansion of Lithia’s operations in the Tennessee market. By more than doubling its local presence, the company gains additional dealership locations representing two brands with growing consumer demand.
Large dealership groups frequently pursue acquisitions to increase market share, improve geographic coverage and diversify their revenue sources. Dealership operations generate income through new and used vehicle sales, financing products, maintenance, repairs, replacement parts and other customer services.
Adding established stores can also provide an acquiring company with an existing operational foundation. Rather than building new dealerships from the ground up, buyers can expand through established locations with existing facilities, employees and customer relationships.
Lithia’s acquisition also demonstrates the continued importance of regional markets in the growth strategies of major automotive retailers. While national dealership groups compete across multiple states, individual metropolitan areas remain important because of their population, economic activity, vehicle ownership patterns and local demand.
The Memphis transaction is not the first time Kerrigan Advisors has represented a dealership group in the city in a sale to Lithia Motors. In 2024, the advisory firm represented Sunrise Auto Group in the sale of its Chevrolet and Buick GMC dealerships to Lithia. The latest transaction continues that relationship and reflects ongoing acquisition activity in the Memphis automotive retail market.
Kerrigan Advisors Continues Its Dealership M&A Activity
The Gossett Motor Cars transaction adds to a busy period for Kerrigan Advisors, which specializes in automotive dealership mergers, acquisitions and valuation advisory services.
The firm reported completing 32 franchise sales during the four months preceding the announcement. These transactions involved dealership groups and individual stores across several major US automotive markets.
Recent transactions cited by the firm include Hennessy Automobile Companies and Toyota of Newnan in Atlanta, Georgia; Tommie Vaughn Ford in Houston, Texas; a Honda dealership in Fort Lauderdale, Florida; Paramount Automotive’s Foreign Cars Italia platform in Charlotte and Greensboro, North Carolina; and Fields Mazda and Chrysler Dodge Jeep Ram in Asheville, North Carolina.
This activity demonstrates the breadth of dealership acquisition opportunities across the United States. Transactions may involve individual dealerships, multiple locations within a metropolitan market or larger dealership platforms operating across several brands.
Kerrigan Advisors Senior Vice President Chris Gempton said representing Memphis’ largest privately owned dealership group was an honor. He noted that transactions involving multiple locations representing both Kia and Hyundai in a single market are relatively uncommon, particularly in the southern United States.
Gempton also thanked the Gossett family for placing its trust in the firm and congratulated Lithia Motors on the acquisition.
Automotive dealership transactions often require coordination among owners, buyers, legal advisers, manufacturers and other stakeholders. Financial analysis, valuation assessments, due diligence, negotiations and transaction planning all contribute to the process. Specialized advisory firms help dealership owners evaluate their options and navigate these complex considerations.
Tennessee’s Business Environment Supports Automotive Retail
Tennessee’s economic performance provides an important backdrop to the transaction. The state has attracted businesses across logistics, manufacturing, transportation, technology and other industries, creating economic activity that supports regional vehicle sales and service demand.
According to the figures cited in the transaction announcement, Tennessee ranked third in CNBC’s 2025 America’s Top States for Business rankings. The state also recorded population growth of 3.8% between 2021 and 2024, making it the seventh-fastest-growing state during that period. The reported growth rate was 27% above the national rate.
Population growth can support automotive retailers by increasing the number of potential customers in a market. New residents may need vehicles for commuting, family transportation, business activities and other daily requirements. Growing communities can also create demand for vehicle servicing, repairs and replacement parts.
Memphis, Tennessee’s second-largest metropolitan area, had approximately 1.34 million residents, according to the announcement. Its cost of living was reported to be 14% below the US average, making the region an attractive location for residents and businesses seeking comparatively affordable operating and living costs.
The Memphis metropolitan economy has also expanded substantially. The announcement reported that the area’s gross domestic product grew 73% since 2010 to nearly $103 billion.
Corporate investment has further strengthened the region’s economic profile. Memphis has attracted more than $41 billion in recent corporate investment, including over $1.5 billion from FedEx at Memphis International Airport and investment associated with xAI’s Colossus data center campus.
These investments contribute to the region’s commercial activity and reinforce its role as an important center for logistics, transportation and technology.
Memphis Remains a Major Transportation and Logistics Hub
Memphis occupies a strategic position in the US transportation network. Its infrastructure supports the movement of goods by air, road and inland waterways, helping connect businesses with domestic and international markets.
The city is widely recognized for its cargo aviation operations, highway connectivity and inland port facilities. The transaction announcement described Memphis International Airport as the busiest cargo airport in the Western Hemisphere, while also highlighting the region’s position along a major trucking corridor and its importance as an inland port.
This transportation infrastructure attracts companies that depend on efficient freight movement and distribution. A strong logistics sector can support employment, business investment and commercial activity across the metropolitan area.
For automotive dealerships, these economic conditions provide a supportive environment, although individual store performance continues to depend on factors such as inventory availability, vehicle pricing, financing costs, competition and consumer confidence.
The area’s combination of population growth, corporate investment and transportation infrastructure helps explain why established automotive retail locations can attract interest from large dealership operators.
Kia and Hyundai Gain Attention in the Dealership Acquisition Market
Kia and Hyundai have become increasingly important brands in the US automotive market. Both manufacturers offer vehicles across multiple price points and segments, including sedans, sport utility vehicles, hybrid models and electric vehicles.
Their expanding product offerings and sales performance have helped increase their importance to automotive retailers evaluating dealership acquisitions.
The announcement cited long-term franchise sales growth figures showing that sales per Kia franchise increased 147% since 2008, while sales per Hyundai franchise increased 104%. Over the same period, sales per Toyota franchise increased 9%, while Honda recorded a 1% decline, according to the figures provided.
These comparisons illustrate the reported growth in Kia and Hyundai dealership sales productivity over the period. However, individual dealership performance can vary depending on location, market conditions, inventory, pricing and the effectiveness of local management.
Kia’s recent performance has also supported confidence in its dealership network. According to the transaction announcement, Kia America recorded its best-ever September in 2026, with sales increasing 18%, and achieved its strongest third quarter on record, with sales rising 8%. The company was also on pace for a fourth consecutive annual sales record in 2026.
Hyundai reported record September and third-quarter sales in 2026, with third-quarter sales increasing 3% year over year. The company had also achieved its fifth consecutive record year for light-vehicle sales in 2025, reaching a reported market share of 5.5%.
Strong manufacturer sales can contribute to dealer confidence, although franchise valuations also depend on profitability, operating costs, future product plans, facility requirements and broader market conditions.
The 2025 Kerrigan Dealer Survey, cited in the announcement, found that 87% of Kia dealers and 74% of Hyundai dealers expected their franchise values to remain stable or increase in 2026. Both figures exceeded the reported US dealer average of 69%.
Franchise Valuations Reflect Buyer Demand
Erin Kerrigan, founder and managing director of Kerrigan Advisors, said Kia and Hyundai are among the strongest non-luxury franchises in the current dealership buy-sell market. She described the Gossett transaction as an example of the buyer demand the firm has observed for both brands.
Kerrigan also noted that rising demand for Kia dealerships led the firm to increase its Kia valuation multiple during the first and second quarters of 2026 in its Blue Sky Report.
In automotive dealership valuations, the term “blue sky” generally refers to the intangible value of a dealership business beyond the value of its tangible assets and other separately assessed components. It can reflect factors such as franchise strength, profitability, location, market position and expected future earnings.
Dealerships operating in business-friendly regions and markets with strong growth prospects may attract valuation premiums when buyers believe those locations offer opportunities for future performance. However, valuation outcomes vary by transaction and depend on the specific dealership’s financial results, competitive environment and strategic importance to the buyer.
Kerrigan said the economic growth and business environment in Tennessee could support favorable franchise valuations in the state. She congratulated both the Gossett family and Lithia Motors on completing the transaction.
Stephen Dietrich, Sarah Seedig and Kyla Baker of Holland & Knight, together with Edward M. Bearman of The Law Office of Edward M. Bearman, served as legal counsel to Gossett Motor Cars.
Legal advisers play an important role in dealership acquisitions by helping owners and buyers address transaction documentation, contractual obligations, regulatory considerations and other legal matters associated with transferring business ownership.
The completion of the Gossett Motor Cars sale represents another notable transaction in the ongoing consolidation of the US automotive dealership sector.
The Automotive Dealership Industry
The sale of Gossett Kia, Gossett Hyundai, Gossett Kia South and Gossett Hyundai South to Lithia Motors highlights several important trends in automotive retail: consolidation among large dealership groups, continued interest in growing vehicle brands and the strategic importance of established regional markets.
For Lithia Motors, the acquisition provides a larger operating footprint in Memphis and strengthens its position in the Kia and Hyundai dealership segments. For Gossett Motor Cars, the sale allows the family-owned business to focus on its remaining eight dealerships while building on a legacy that began in 1985.
Kerrigan Advisors’ role in the transaction also reflects the continuing demand for specialized advisory services as dealership owners evaluate succession plans, portfolio changes and potential sales.
With Memphis benefiting from population growth, corporate investment and its position as a major transportation hub, the market remains an important location for automotive retailers. The long-term performance of the acquired dealerships will depend on local customer demand, manufacturer sales, service operations and broader economic conditions.
Overall, the transaction represents a strategic change in ownership that brings four established dealerships into Lithia Motors’ growing network while allowing Gossett Motor Cars to concentrate on its remaining operations. It also reinforces the continuing role of mergers and acquisitions in shaping the competitive landscape of the US automotive retail industry.
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