LITTLE ROCK — Steve Landers Sr., president of RLJ-McLarty-Landers Auto Group, is selling most of his interest in the billion dollar automobile-dealership company.
The company, which has about 28 auto franchises in 18 locations in eight states, is owned by billionaire Robert Johnson, Thomas “Mack” McLarty and Landers. Johnson owns majority interest in the business and McLarty and Landers own an equal minority share, Landers said.
Johnson is founder of Black Entertainment Television. McLarty, a native of Hope, was White House chief of staff under President Bill Clinton.
The firm did more than $1 billion in sales last year and ranked among the 20 largest auto dealers in the country, with dealerships in Alabama, Arkansas, Kansas, Louisiana, Maryland, Missouri, Tennessee and Texas, according to Automotive News. It is the largest auto company controlled by a minority-group member in the country, the trade magazine said. Johnson, who is black, bought 60 percent interest in the business in 2007.
Landers, who will turn 59 later this month, declined to say how much he will receive for his interest in the company. The transaction has not yet closed, he said.
Franklin McLarty, 38, Mack McLarty’s younger son, is now senior vice president of RLJ McLarty-Landers. He will become president when Landers steps down at the end of this year.
“You can’t overstate Steve’s importance to the partnership and the venture,” Franklin McLarty said of Landers. “He has been president of the company since the founding.”
Landers said he’ll be a consultant for another year. “Then I’ll sit on the advisory board. Franklin has been a great asset to the company. He has been very good at keeping it going.He was born into the car business and has been groomed as heir-apparent to run this business.”
Landers said he chose to sell because of his health. He has had 12 knee surgeries, and another is scheduled in January.
He is not leaving the automobile business, Landers said. He will keep his interest in Landers Toyota and Steve Landers Chrysler Dodge Jeep, both in Little Rock, and a dealership in St. Louis recently acquired by his younger son, Scott.
He also will retain his ownership interest with McLarty in an automobile dealership group with locations in China, Brazil and Mexico, Landers said.
“I’m not saying we’re getting out of the car business, because we’re not,” Landers said. “I’ve still got plenty on my plate.”
Mack McLarty said in a prepared statement that the move is a natural transition for the company.
“We are appropriately proud of the organization we’ve built and the success we have achieved in the last several years,” Mack McLarty said in the statement. “Steve is a great partner and friend. We look forward to our continued efforts with him in RLJ-McLarty-Landers and our international automotive activities.”
In the 1980s and 1990s, Landers built the largest Chrysler dealership in the world in Benton, selling more than 10,000 new vehicles a year. He and other family members sold that dealership to United Auto Group in 1995 for more than $40 million.
He remained president of that franchise until 2003, when he stepped down because of other concerns with his health.
Business, Pages 21 on 09/18/2012