Everything is bigger in Texas, even the deals. Serial entrepreneur Adam Smith has sold six of his Lone Star State dealerships to a new holding company called Navigant Motor Group. Included in the deal were Smith’s flagship Texas Harley-Davidson in Bedford, Texoma Harley-Davidson in Sherman, Lumberjack Harley-Davidson in Nacogdoches, Roughneck Harley-Davidson in Longview, H-D Waco and Texarkana Harley-Davidson. The deal also includes Lucky Penny Cycles in Bedford and Houston, which specialize in pre-owned motorcycles.
“I’ve been in this business 31 years — that’s a lot of friends, motorcycles and rides,” says Smith. “I started with one 6,000 sq./ft store with 6 team members and grew to eight locations with more than $100 million in annual revenue. I accomplished what I set out to accomplish in this industry. This is the right partner and the right time for me to find out what might be next in life for me and to take a back seat for once.”
Smith, 48, opened his first Harley-Davidson dealership in Grand Prairie, Texas, in 1996, making him the youngest person to own and operate a Harley-Davidson dealership at the age of 22. In 2017, he opened Texas’ largest Harley-Davidson dealership: Texas Harley-Davidson is 72,000 sq./ft. on six acres with two separate showrooms. His dealerships have earned multiple coveted Bar & Shield awards and Smith also served as the 2018 Harley-Davidson Dealer Advisory Council president, representing the approximately 675 Harley-Davidson dealers across the nation.
The sale to Navigant Oak represents one of the first dealership acquisitions by a financial buyer in the Harley-Davidson arena. The Motor Company has historically prevented private equity investors from acquiring dealership franchises. However Harley-Davidson recently relaxed ownership restrictions to facilitate growth.
Navigant Oak (NavOak) is a private holding company for a southeast Michigan family’s portfolio of investments. They specialize in working with owners who are exiting companies while working to maintain the longevity and commitment to the business the owner originally created. Navigant Oak currently has holdings in several industries including aerospace, HVAC, real estate, transportation, retail, industrial equipment, power generation, business services and automotive supply.
“Navigant Oak was the best cultural fit for Calculated Risk and I appreciate that they are a family company,” notes Smith. The sale allows Smith to retain 20% ownership of all dealerships, as well as a seat on the board of directors. The sale closed May 16.
The existing dealer leadership team will remain and continue to be a driving force for the company. NavOak’s leadership will include managing partners Ethan Allen and Aaron Cozart under the guidance of the company’s Principal Greg Boll. “Navigant Oak is excited to partner with Adam Smith and the incredibly talented team he assembled at each dealership location,” adds Allen. “To propagate the legacy of the iconic Harley-Davidson brand is a thrill for our team.”
“Harley-Davidson is an iconic American brand with a promising future. As technology and customer desires evolve, the Navigant Motor Group intends to embrace and capitalize on H-D’s roots along with new ingenuity to create significant growth opportunities for all stakeholders – the dealer, the manufacturer and especially the customer,” claims Cozart.
