RumbleOn to Acquire Freedom Powersports
Irving, Texas based RumbleOn, Inc., the NASDAQ listed (RMBL) automotive and powersports buy/sell site operator, financial services provider and, since early 2021, owner of the RideNow chain of Brick & Mortar dealerships, is on the acquisition trail again.
The company has entered into a definitive agreement to acquire Freedom Powersports, including the business and powersports dealerships operated at 13 locations in Texas, Georgia and Alabama. The addition of Freedom Powersports will expand RumbleOn's national U.S. presence to over 55 locations.
"The anticipated acquisition supports RumbleOn's growth strategy by expanding and strengthening its omnichannel offering."
Having once styled itself as a "100% online ecommerce company that aggregates and distributes pre-owned automotive and powersport vehicles to and from consumers and dealers," the acquisition of Freedom Powersports marks another stage in the seemingly inexorable process of market consolidation that has been underway for the past four or five years and sees another online E-tailer business reversing into traditional Brick & Mortar retail environments.
"We are excited about the outstanding business Kevin, Tom and the Freedom team have built and we look forward to Freedom joining the RumbleOn team. We are well aware of the benefits of adding 13 exceptional locations, representing 15 leading manufacturers to further strengthen our omnichannel offering," said Marshall Chesrown, RumbleOn's Chief Executive Officer.
"We remain confident in our ability to transform the highly fragmented powersports industry to drive efficiencies in the marketplace, and to improve the customer experience. We expect Freedom to be accretive to our performance on day one without raising equity capital to fund cash consideration."
RumbleOn now boilerplates itself as "the nation's first and only omnichannel customer experience available in powersports and the largest powersports dealer," stating that it "offers a seamless shopping experience where a customer can browse, buy, sell, trade, or get financing at any of the company's bricks-and-mortar locations or online at the click of a button."
It says that its planned acquisition growth strategy "will further strengthen its omnichannel offering." Freedom Powersports was founded in 2012 by Kevin Lackey.
www.rumbleon.com