Quarterly report [Sections 13 or 15(d)]

Business Combinations

v3.25.2
Business Combinations
 6 Months Ended
Jun. 30, 2025
Business Combination [Abstract]  
Business Acquisitions and Dispositions Business Acquisitions and Dispositions
During the six months ended June 30, 2025, we acquired four businesses in our Franchised Dealerships Segment and were awarded one franchise in our Powersports Segment, which was previously an authorized retail outlet in Sturgis, South Dakota. The businesses acquired were Jaguar Land Rover Los Angeles, Jaguar Land Rover Newport Beach, Jaguar Land Rover San Jose and Land Rover Pasadena for an aggregate gross purchase price of approximately $359.9 million. The preliminary allocation of the aggregate gross purchase price included inventory of approximately $135.6 million, property and equipment of approximately $8.0 million, goodwill of approximately $215.5 million, other assets of approximately $1.5 million, and other liabilities of approximately $0.7 million.
As the businesses acquired in 2025 were purchased on the last day of the second quarter, no revenue or earnings attributable to those businesses are included in the accompanying statements of income. Acquisition costs recognized as an expense in the June 30, 2025 consolidated statements of operations related to these acquisitions were immaterial. Additionally, the total amount of goodwill from these acquisitions that is expected to be deductible for tax purposes related to these acquisitions is approximately $215.5 million.
The following unaudited pro forma summary presents consolidated information as if the 2025 acquisitions had occurred on January 1, 2024:
Six Months Ended June 30, 2025 Twelve Months Ended December 31, 2024
(In millions)
Revenue
 $ 7,585.3  $ 14,735.4 
Income before taxes
 $ 36.7  $ 283.4 
We did not acquire any businesses during the six months ended June 30, 2024.
During the six months ended June 30, 2025, we terminated one domestic franchised dealership and one powersports dealership. During the six months ended June 30, 2024, we terminated two luxury franchised dealerships and disposed of one mid-line import franchised dealership, in addition to closing the remaining seven Northwest Motorsport stores within the EchoPark Segment. The disposal generated net cash of approximately $3.4 million.