EXECUTIVE SUMMARY
B. Riley Real Estate is pleased to offer
the sale-leaseback of a 9-property portfolio on behalf of powersports retailer
RumbleOn Inc. (NASDAQ: RMBL). Strategically located in Texas, Georgia, and
Florida, this 236,896 square foot portfolio includes a strong set of
high-performing dealerships offering customers a personalized, omnichannel
experience including buy-sell-trade-financing of new and pre-owned vehicles,
comprehensive vehicle servicing, and a full range of retail parts and
powersports accessory sales. The company will be considering offers on the
entire portfolio, as well as on individual dealership locations.
Incorporated in 2013 and formally
established in 2016 as RumbleOn, the company has leveraged multiple strategic
acquisitions and robust organic growth to become the largest buyer/seller of
powersports vehicles in the country. With a comprehensive, omnichannel
platform, RumbleOn's current operations consist of 55 powersports retail
locations, 6 fulfillment centers, and 10 additional key facilities that host
various functions like automotive operations, logistics, storage, and field
support.
With a diversified business model
spanning powersports, automotive, and vehicle logistics across both retail and
wholesale channels, the company has driven strong financial performance with
revenue of ~$1.8B and adjusted EBITDA of over $120M in 2022. Given the
fragmented nature of the powersports industry, RumbleOn is well positioned for
future growth via both brick-and-mortar expansion, as well as the continued
scaling of its industry leading omnichannel platform.
Given the company's excellent market
positioning and solid long-term outlook, the strength of both the individual
dealerships and broader company financials, and the portfolio's strategically
located high-quality real estate, this offering provides buyers an excellent
long-term investment opportunity.
INVESTMENT
SUMMARY
As the nation's first, largest, and only publicly traded,
technology-based platform in the powersports industry, RumbleOn provides
investors a sophisticated, strong-credit operator with a diversified, highly
differentiated business model. With disciplined operations that have allowed
the brand to swiftly expand while maintaining solid financial performance, the
company is pursuing a sale-leaseback of its corporate owned dealerships in
order to pay down existing debt and better position the business going forward.
With an understanding of the tremendous
growth opportunity that exists within the powersports category, the company has
a robust development pipeline in place that includes multiple new retail and
distribution locations. Additionally, as a byproduct of its disciplined
approach, the business has the scale and necessary resources to effectively
capitalize on the fragmented market and rapidly expand its network via
additional strategic acquisitions. Given this future growth potential, the
brand will likely continue to consolidate its market share moving forward,
further enhancing its overall performance and solidifying its long-term market
position.
Alongside these company-level advantages,
at the individual dealership level, with well-maintained quality real estate in
high traffic major market locations, these high performing locations each
generate solid sales volumes and strong profitability which will provide
investors clear long-term operational stability across the portfolio.
COMPANY
OVERVIEW
Established in 2016 and headquartered in
Dallas, Texas, RumbleOn has grown from an online powersports sales marketplace
and vehicle supply chain solutions provider to the nation's leading destination
for all things powersports. With the launch of RumbleOn.com and the company's
IPO in 2017, the company's initial focus on the development of its online
platform and its supply chain solutions business quickly shifted as the company
recognized a void in the marketplace for a truly integrated omnichannel
powersports sales platform.
In August 2021 the company acquired the
RideNow companies, which provided a portfolio of 41 retail powersports
dealerships located primarily across the US sunbelt region. This acquisition
was followed shortly thereafter by the acquisition of Freedom Powersports in
February 2022 and several other one-off acquisitions that has brought
RumbleOn's brick-and-mortar network to 55 dealerships predominantly located in
the southern United States.
As these acquisitions have occurred, the
company has worked quickly to integrate RumbleOn's sophisticated online
platform with the brick-and-mortar dealership operations. With well-established
retail locations that provide an unmatched inventory mix of all major
powersports brands and OEMs, the company is able to leverage this integrated
platform, alongside its vehicle logistics and distribution expertise, to
provide its customers an unmatched experience throughout the entire sales and
service process.
With its significantly differentiated
model, RumbleOn has rapidly emerged as the leading powersports destination for
consumers nationwide. With a keen focus on delivering a high-quality,
full-service experience, the brand has driven strong customer adoption and
significant brand penetration within the market, delivering solid financial
performance for its shareholders.
With a diversified and sophisticated
sales platform, a personalized and integrated customer experience, and the
capability to significantly scale its network within the near-term, RumbleOn is
well positioned to continue its growth and further solidify its place as the
leading US powersports destination moving forward.