SouthWest Dealer Services Acquires Two Agencies
April 19, 2016
IRVINE, Calif. — SouthWest Dealer Services, an independent full-service provider of F&I products and services, has acquired Chicago-based United Insurance Group (UIG) and Seattle-based Olympic Dealer Marketing (ODM), according to a company announcement.
The mergers are part of the company's strategic plan to expand its financial footprint and expand as a leader in the automotive retail industry. Currently, the company operates out of nine strategic locations across the U.S. that allow local dealers hands-on experience with SouthWest’s sales forces.
“We’ve known the principals at both United Insurance Group and Olympic Dealer Marketing for decades, and they each have an outstanding reputation in their respective markets. We share mutual philosophies in terms of building long-term partnerships with clients,” said Marc Provencher, senior vice president of mergers and acquisitions for Southwest Dealer Services. “These partnerships are both a natural and strategic fit as they will allow us to expand into additional markets and meet the needs of current and new clients. We’re excited for this first step, fulfilling our plan to build out a ‘coast-to-coast’ footprint, which will both complement and further fuel the development of our company as an industry leader.”
The addition of the two new agencies has increased SouthWest’s total employee count to 360 and it now serves over 650 active dealers across 16 states within the United States. According to the company, there will be no personnel change as a result of the merger.
Financial terms of the transactions have not been disclosed. United Insurance Group Principal Mike Nolan and ODM principals Jim Muller and Ian Fee have joined SouthWest Dealer Services as partners.
“Partnering with UIG and ODM is a best of both worlds situation,” said Larry Pomarico, senior vice president of sales for SouthWest Dealer Services. “We are looking to capitalize on the wave of industry consolidation and expand geographically through strategic acquisitions, while maintaining the level of local support that our dealers are accustomed to.”
The acquisition of UIG and ODM is immediately accretive to SWDS Holdings and is complementary to Spencer Capital Holdings’s existing portfolio of companies, according to the company announcement. Dealers are expected to significantly benefit from the acquisition due to inside access to products and services across Spencer Capital Holdings, SouthWest's parent company.