Atlantic Automotive Corp. of Pikesville, already one of the largest new-car retailers in the state, is getting bigger with yesterday's announcement that it will acquire Tischer Autopark Inc. in Silver Spring.
Terms of the transaction, which is expected to close before the end of the year, were not disclosed.
Through a series of acquisitions in recent years, Atlantic has grown into a company with sales approaching $1 billion a year and 2,000 employees, most of them in the Baltimore-Washington region, according to the company.
The latest purchase involves two Tischer dealerships in the Montgomery Auto Sales Park off U.S. 29 in Silver Spring. One outlet is a Subaru dealership and the other sells Porsche, Audi and BMW automobiles.
The deal does not include an Acura and Nissan dealership in Laurel that operates under the same name.
When the acquisition is completed, Atlantic will have 35 dealerships selling 20 brands of cars and trucks. It also owns the 28-store Mr. Tire chain in Maryland and Northern Virginia.
"This makes them the biggest dealer in the state, no matter how you measure it, sales volume or units sold," said Peter Kitzmiller, president of the Maryland New Car and Truck Dealers Association.
Steven B. Fader, chief executive of Atlantic, which markets cars and automotive services under the Mile One brand name, said the purchase of Tischer is part of the company's strategy "of doing everything for motorists but selling them gasoline."
Fader said the size of the company makes it more competitive, more efficient and enables it to benefit from economies of scale.
Under the Mile One program, a customer who buys a Volvo at one of the company's stores in Montgomery County would be referred to a Chevrolet store in the Baltimore area if he wanted to buy a Suburban sports utility vehicle.
"The Volvo dealer would put the customer in touch with the Chevrolet store or make arrangements to have the Suburban delivered to the customer's home or office," Fader said. The goal is to keep the business within the Mile One family.
Fader said the Tischer outlets have been in business for more than 30 years. The company's work force of about 100 employees and managers will stay with the dealerships, he said. The exception is the owner, Petra Tischer, who will be retiring.
Tischer was not available for comment yesterday, but Fader said Tischer approached Atlantic about selling the dealerships.
Fader expects more consolidation among auto retailers in coming months as dealers seek to sell their businesses before an anticipated decline in new-car sales.
Fader also hinted that Atlantic's aggressive acquisition program is not over.
When it was noted that the company doesn't have a Ford or Toyota outlet, he responded: "Look for more things to come."
Atlantic acquired Griffith Automotive Group of Towson last year for $32 million plus inventory. The sale involved dealerships for Honda, Lincoln Mercury and Dodge in Parkville, Towson, Westminster and York, Pa.
In 1998, Atlantic bought Herb Gordon Auto in Silver Spring. Herb Gordon had four dealerships selling Mercedes-Benz, Kia, Dodge, Oldsmobile, Nissan and Volvo cars and trucks.
