Haig Partners LLC, a buy-sell advisory firm to auto, heavy truck and RV dealers in the U.S., served as the exclusive sell-side advisor on the sale of River States Truck and Trailer to Premier Truck Group, an international medium-duty and heavy-duty commercial truck dealership group and a Penske Automotive Group company.
The acquisition is expected to add $200 million of estimated annualized revenue to Premier Truck Group, which has 48 locations throughout Texas, Oklahoma, Kansas, Missouri, Tennessee, Georgia, Utah, Idaho, Wisconsin, Minnesota and Oregon, as well as Ontario and Manitoba in Canada.
River States operates five facilities throughout the western Wisconsin and eastern Minnesota areas, including three full-service Freightliner and Western Star dealerships located in Eau Claire, La Crosse and Roberts, Wisconsin. In addition, River States operates independent repair facilities in Osseo, Wisconsin, and Eagan, Minnesota. With the acquisition of River States, Premier Truck Group adds an additional 161,000 square feet of facilities, 96 service bays and 63 technicians.
Joe Laux, long-time owner and CEO of River States, said, “I’d like to thank my hardworking teammates for all their contributions to our success over the years. We punched far above our weight, providing excellent service to customers near and far. I will miss being a Freightliner dealer, but I’m excited to spend more time with my family, friends and new business ventures. I congratulate Premier Truck Group on its acquisition of my dealerships. I know they will take great care of my team and provide them with opportunities only a national firm could offer. I’d also like to thank my M&A advisors at Haig Partners for representing me during this sale process. I expect a lot from those around me. Alan Haig, Derek Garber and Erik Haig proved themselves to be honest, hard workers and good communicators and added more value than I could have expected during this transaction. They truly are experts at what they do.”
Stephen Dietrich and Brooke Sizer from Holland & Knight served as legal counsel to River States.
Laux began his career in the heavy truck retail industry in 1993 when he joined River States. Under his direction, the group grew to five franchised dealerships and five nonfranchise parts and service locations. Laux also expanded the Freightliner dealerships, building three facilities. Vehicle sales, parts sales and service work grew significantly over the years, which brought him recognition and numerous awards. Notably, Daimler named Laux “Freightliner Dealer of the Year,” America Truck Dealers nominated him for its “Truck Dealer of the Year” award, Successful Dealer magazine awarded him “Truck Dealer of the Year,” and Deloitte named him nine times to its “Wisconsin 75,” which recognizes 75 of the largest and most successful companies in Wisconsin.
Alan Haig, president at Haig Partners, said, “It was a pleasure to work with an entrepreneur like Joe Laux to assist him in the sale of his dealerships. Joe built a very impressive business, and we are glad that Premier Truck Group recognized its value. We know they will do well in these markets and bring some of the winning ways that are embodied throughout the Penske organization. We’ve had the pleasure of representing the owners of 12 Freightliner locations across Texas, Oklahoma, Tennessee, Indiana and now Wisconsin. The heavy truck industry continues to attract significant capital from consolidators due to its large fixed operations component that offers strong profits through the ups and downs of various business cycles. Well-capitalized players seek to offer nationwide sales and service networks to large fleet operators, as well as fleets that operate locally. There are a lot of similarities between the heavy truck and auto retail worlds. Consolidation is also steadily progressing in the auto industry. Many smaller dealers are choosing to exit while values are high and demand is strong.”