RumbleOn announced that it has entered into definitive agreements to acquire Wholesale, Inc. and Wholesale Express, LLC (together “Wholesale”). The deal is under consideration of approximately $23 million consisting of $16 million of cash and the remaining balance in RumbleOn Class B shares, with the aggregate consideration subject to adjustment based on the stock price of the RumbleOn Class B Common Stock at closing.
RumbleOn also announced the pricing of a $21.5 million private placement of Class B shares, expanded its existing credit facility by $5.0 million and reported preliminary third quarter financial results.
RumbleOn issued a shareholder letter and supplemental investor presentation with further discussion of the acquisition, financing and preliminary third quarter results for the period ended Sept. 30, 2018, which may be accessed on the Investor Relations section of the company’s website.
“Our plan has always been to expand into adjacent markets and the acquisition of Wholesale provides rapid and profitable entrance into the 44 million annual sales automobile market. We will enter this new market with meaningful size and scale, and without the significant start-up costs typically associated with new market entries,” said Marshall Chesrown, founder, chairman and CEO of RumbleOn. “RumbleOn and Wholesale have strong synergies across our business models and solutions. The combination of the current visitors already familiar with our powersports programs and Wholesale’s prominent brand and reputation creates an incredible opportunity.”
Link: RumbleOn
