Sports magnate George Gillett and longtime auto dealer Rod Buscher finalized the purchase of two Englewood car dealerships from Burt Automotive, the partners announced Friday.
The deal for Burt’s Toyota Scion and Burt Subaru follows months of speculation that the two franchises fronting south Broadway were on the sales block. On Sunday, the dealerships will close for a quick reorganization, then reopen Monday under the name “Groove.”
While terms of the transaction weren’t revealed, Buscher told The Denver Post that the partners’ company, Summit Automotive, aims to invest millions in renovating the Toyota site within the next year. The new owners also will eventually upgrade the dealerships’ marketing by conducting sales over the Internet and delivering cars to buyers’ homes.
“These (Burt) businesses are at the top of the heap,” said Buscher, chief executive officer of Groove. “We have faith in their future.”
The acquisition is the second major investment by Summit in Colorado. It also owns dealerships in Silverthorne and Glenwood Springs.
A statement released from Burt said the company was dramatically shifting its focus away from traditional car dealing “dependent on specific manufacturers” to more future-oriented fuel-efficient vehicles.
Buscher, in a press release, offered praise for the past owners, crediting their “long history of community involvement, service and contribution” to the market.
Industry experts called the purchase among the biggest deals in recent years.
“This is a major acquisition,” said Tim Jackson, president of the Colorado Automobile Dealership Association. “This deal has been in the works for a long time, and they (Summit) probably got a much better price. It’s a buyer’s market.”
The Gillett family has largely charted its path through the sports and recreation industry as owner of the National Hockey League’s Montreal Canadiens, Liverpool FC soccer team and Richard Petty Motorsports. Gillett embarked with Buscher, founder of the Elway car dealerships, into the auto industry in 2006.
Burt Automotive still controls five dealerships. It reported $2.12 billion in sales last year.
Miles Moffeit: 303-954-1415 or mmoffeit@denverpost.com
