Republic to Buy Cross-Continent Auto

Republic Industries Inc. agreed to buy Cross-Continent Auto Retailers Inc. for $187 million in cash and assumed debt in its first purchase of a publicly traded dealership. Republic, the world’s largest retailer of cars and trucks, said it will pay $10.70 a share for Amarillo, Texas-based Cross-Continent, a 66% premium to Wednesday’s closing price of $6.44, and assume $42 million in debt. The purchase will add dealerships in Colorado, Nevada, Oklahoma and Texas. Fort Lauderdale, Fla.-based Republic wants to consolidate the fragmented auto retailing industry, allowing it to slash advertising and other costs to boost profit. On the New York Stock Exchange, Republic shares slipped 94 cents to close at $15.88; Cross-Continent shares jumped $3.06 to close at $9.50.