Business Combinations |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2026 | ||||||||||||||||||||||||||||||||||||||||||||||
| Business Combination [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||
| Business Acquisitions and Dispositions | Business Acquisitions and Dispositions Acquisitions During the six months ended June 30, 2026, in an effort to expand and diversify our business, we acquired one business (consisting of six locations) in our Powersports Segment for an aggregate gross purchase price of approximately $66.3 million. The dealership locations include Falcons Fury Harley-Davidson (Conyers, Georgia), Raging Bull Harley-Davidson (Durham, North Carolina), San Diego Harley-Davidson (San Diego, California), Space Coast Harley-Davidson (Palm Bay, Florida), Treasure Coast Harley-Davidson (Stuart, Florida) in addition to one authorized retail outlet location, Cocoa Beach Harley-Davidson (Cocoa Beach, Florida). The preliminary allocation of the aggregate gross purchase price included inventory of approximately $13.2 million, property and equipment of approximately $0.8 million, real estate of approximately $40.3 million, goodwill of approximately $13.6 million, other assets of approximately $0.1 million, right-of-use assets of $7.9 million, lease liabilities of $8.0 million, and other liabilities of approximately $1.6 million. The accompanying consolidated statements of operations include revenue and earnings attributable to the business acquired during the six months ended June 30, 2026 of approximately $19.0 million and $1.0 million, respectively. Acquisition costs recognized as an expense in the consolidated statements of operations related to this acquisition were immaterial. Additionally, the total amount of goodwill and other intangibles from the acquisition that is expected to be deductible for tax purposes related to the acquisition is approximately $13.6 million. The following unaudited pro forma summary presents consolidated information as if the acquisition had occurred on January 1, 2025:
The supplemental pro forma information for revenue and income before taxes of the Company as though the business combination had occurred on January 1, 2026 is impracticable to provide due to the fact that carve-out financial information for the acquired business prior to the acquisition was not available. 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. Dispositions During the six months ended June 30, 2026, we disposed of three mid-line import franchised dealerships, one domestic franchised dealership, and one collision center. The disposal of these five locations and related real estate generated net cash of approximately $40.5 million and $19.5 million, respectively, for combined gross proceeds of $60.0 million and generated a pre-tax gain on disposal of approximately $5.1 million. During the six months ended June 30, 2025, we terminated one domestic franchised dealership and one powersports dealership.
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