America’s Auto Auction has acquired Auction Broadcasting Co., a move that gives the nation’s third-largest auto auction company 19 locations in the U.S.
America’s Auto Auction will add seven locations to its portfolio, according to a post on Twitter by Jason Hockett, vice president of Auction Broadcasting. The company will now have locations in states including Louisiana, Kentucky, Alabama and Virginia.
The acquisition, first reported by Auto Remarketing, is the latest major move by the upstart America’s Auto Auction, which has grown nearly fivefold since 2006, when it had four stores.
A map of combined AAA and ABC locations posted on Twitter by Hockett did not include Auction Broadcasting’s Cincinnati auction, and its fate is not immediately clear. A representative for the Cincinnati location declined to comment, and voicemails seeking comment from executives at both companies were not immediately returned.
America’s Auto Auction has quickly grown into one of the larger players in the auction space since it was founded in 2005. The Dallas company is owned by CEO Ben Lange and private equity firm Trinity Hunt Partners.
“Looking forward to working and growing with Ben and the America’s Auto Auction team,” Hockett said in a tweet.
The move gives America’s Auto Auction access to eight new markets, including Detroit, St. Louis, Birmingham, Ala., and Baton Rouge, La. The company already operates in markets including Atlanta, Chicago, Dallas, Houston and San Antonio.
Auction Broadcasting, of Indianapolis, was founded in 2000 by Mike Hockett, who previously founded what eventually became the nation’s second-largest auto auction company, ADESA, now a unit of KAR Auction Services Inc. Jason Hockett is Mike Hockett’s son.
The acquisition comes as a glut of off-lease vehicles and other used cars return to the market, which experts anticipate will put downward pressure on used-vehicle prices.