CarLotz plans to go public on Nasdaq
Chesterfield County-based car consignment company merging with Miami-based corporation
Chesterfield County-based CarLotz Inc., a consignment dealer of used cars, announced Thursday it plans to go public and expand nationwide.
CarLotz, which is valued at $827 million, will combine with Miami-based Acamar Partners Acquisition Corp., a publicly traded special purpose acquisition company, to make it a public company. At closing, the company name will remain CarLotz Inc. and will be listed on Nasdaq and trade under LOTZ. The company’s headquarters will remain in Chesterfield County following the merger.
Founded in 2011 by local entrepreneurs Michael Bor (now the company’s CEO), Aaron Montgomery and Will Boland, CarLotz opened its first store in Midlothian and later expanded to Henrico County, Richmond, Chesapeake as well as North Carolina, Florida, Texas and Illinois. The company now has eight locations and sells vehicles via its online platform.
CarLotz also has a commercial side, helping re-market cars for leasing companies, financial institutions and fleet management companies. In 2019, CarLotz made the Inc. 5000, ranking No. 435 on the list of the country’s fastest-growing private companies.
“We are thrilled to bring CarLotz and Acamar Partners together as one company, adding more fuel to the fire that we built when founding the business in 2011,” Bor said in a statement. “Our technology, omni-channel marketing and asset-light inventory sourcing model allows consumers to buy, sell, trade or consign vehicles online or in-person, creating a unique model to capture market share over the long term.”
CarLotz also plans for increased inventory from existing and new corporate vehicle sourcing partners, new technology platforms and an increased focus on marketing as part of its nationwide expansion plan, according to a company statement.
“On top of this great combination of attractive market dynamics and a differentiated business model, CarLotz benefits from multiple short and long-term growth opportunities driven by its ongoing nationwide expansion, which Acamar Partners expects to support through this transaction,” Acamar Partners CEO Luis Solorzano said in a statement.
Groups including Fidelity Management & Research Co. LLC, KAR Global, McLarty Diversified Holdings, Rick Wagoner (the former CEO of General Motors) and TRP Capital Partners have committed to invest $125 million in common stock at $10 per share.
CarLotz used Deutsche Bank Securities Inc., Barclays plc and William Blair & Co. for financial and capital markets advising and Freshfields Bruckhaus Deringer LLP as legal counsel. Acamar Partners’ advisers include The Goldman Sachs Group Inc. and Simpson Thacher & Bartlett LLP.