THE VIRGINIAN-PILOT
Copyright (c) 1994, Landmark Communications, Inc.
DATE: Wednesday, September 28, 1994 TAG: 9409280486
SECTION: BUSINESS PAGE: D1 EDITION: FINAL
SOURCE: BY STEPHANIE STOUGHTON, STAFF WRITER
DATELINE: NORFOLK LENGTH: Medium: 71 lines
J.R. ``Rick'' Hendrick III, one of the nation's largest auto dealers and a NASCAR team owner, on Tuesday bought Colonial Auto Group, one of the oldest and largest family-owned dealerships in Hampton Roads.
With the purchase, Hendrick's dealership empire is now truly coast-to-coast.
``This will be my first major step into Virginia,'' Hendrick said.
And it probably won't be the last.
His company, Charlotte, N.C.-based Hendrick Automotive Group, has gobbled up several dealerships over the years as the industry recovers from sluggish sales. It now owns about 70, including a smaller dealership in Woodbridge.
With $1.7 billion in sales last year, Hendrick Automotive ranked No. 2 in the nation among the so-called ``auto mega-dealers.'' The purchase of Colonial could make it the nation's largest.
Terms of the sale were not disclosed.
Originally, Darden had planned to sell half of the company to Hendrick with an option to buy the remainder. But both owners changed their minds, partly because they wanted to simplify the deal and partly because the industry had strengthened.
While Hendrick Automotive is a giant, Colonial is no slouch in Hampton Roads. It had $91 million in sales in 1993 and is expected to surpass the $100 million mark this year. Among Chevrolet dealers nationally, Colonial is ranked among the Top 13 sellers.
Although Colonial has been financially robust, owner Joshua P. Darden Jr. long has planned to sell the business to resolve a succession problem.
His father founded the dealership on Colonial Avenue in Norfolk in 1930, and Darden later took over. Colonial Auto Group now operates Chevrolet-Geo and Cadillac dealerships in Norfolk, andSubaru and Mitsubishi dealerships in Chesapeake.
Darden said he left the door open for his his two daughters to take over, but they followed other career paths - one in nature and the other in teaching.
``I told them this was an opportunity if they were interested,'' he said. ``They weren't interested. That's what really started this whole thing.''
Darden also said he wanted Hendrick to buy the company because he wouldn't cut from Colonial's 250-member staff or make any other significant changes to its four franchises in Hampton Roads. Darden also wanted to remain as manager of the dealership, but have more time to work as a University of Virginia fund-raiser.
The Hampton Roads market is particularly attractive to Hendrick because it's known for its booming automobile sales, many to military personnel and their families.
For customers, the only changes will be a wider selection of automobiles that can be ordered. Colonial's sales staff now will be able to find cars and trucks from Hendrick Automotive dealerships and have them shipped to Hampton Roads.
Also, customers probably will see more of promotions involving Hendrick's other business: Hendrick Motorsports. He says his NASCAR team, which races on the Winston Cup circuit, will visit the Colonial franchises. ILLUSTRATION: A GROWING AUTO DEALERSHIP EMPIRE
[Color Photo] TAMARA VONINSKI/Staff file
Joshua P. Darden Jr., left, and J.R. "Rick" Hendrick III
COLONIAL AUTO GROUP
HENDRICK AUTOMOTIVE GROUP
Graphics
[For a copy of the graphics, see microfilm for this date.]
by CNB