Davies auto group
goes up for saleThe former Big Five firm's
heavy-equipment division
could be on the market as well
The automotive division of former "Big Five" Hawaii company Theo H. Davies & Co. is for sale, as its Hong Kong-based parent company, Jardine Matheson Ltd., appears to be selling its Hawaii assets.
Davies' food service group, which is the Hawaii franchisee for Pizza Hut, Taco Bell and others, is also on the block, and the company's heavy-equipment division may be as well, according to industry insiders.
Jardine Hawaii Motor Holdings Ltd. and Jardine Hawaii Imports Inc. are more commonly referred to as TheoDavies Euromotors Inc., though Jardine purchased TheoDavies in 1973. TheoDavies, with 255 employees, had $148.3 million in revenues last year, according to Hawaii Business magazine. The company sells brands including Mercedes-Benz, Jaguar and Land Rover.
"We're not in escrow, but we're certainly talking with them," said Tom Downer, director of operations for Nevada-based Fletcher Jones Management Group Inc.
Officials in Hawaii have not returned repeated calls. However, officials from both Fletcher Jones and Jardine have frequented TheoDavies' properties in recent days.
Several Hawaii automobile dealers said they have heard about Fletcher Jones' interest in TheoDavies and have advised employees that the company may be entering the market, but none would comment for attribution.
Fletcher Jones has dealerships and affiliated businesses in Chicago, Reno and Las Vegas, Nev., and Newport Beach, Calif. According to its Web site, Fletcher Jones sells more new and used Mercedes-Benz models than any other authorized dealer in the United States. It also represents various other brands, including Lexus, Toyota, Infiniti, Ford, Audi, VW, Honda and the ultra-high-end, made-to-order Maybach.
Jardine Motors Group, the company's international auto division, was among its parent's shining stars for the first half of the year, according to a July 30 interim financial statement. It produced "a modestly higher contribution" by maintaining "its underlying net profit at $21 million for the first half of 2003; a satisfactory performance in difficult circumstances."
"In the United States, a resilient import market led to enhanced results from Hawaii and Beverly Hills for the period. Jardine Motors Group is now seeking opportunities to expand its core franchises in the United Kingdom," the report said.
Davies' hydraulic equipment sales company, Pacific Machinery Inc., is also on the block, according to insiders in the heavy equipment industry and the automotive sector.
"I don't have any comment -- at all," said Robert McGarry, president of Pacific Machinery.
Keith Kagawa, a manager at Pacific Machinery division Hawaiian Fluid Power, said, "We have heard rumors like that, but to our knowledge, they're just rumors."
Jardine is selling Davies' food service group, franchisee for Hawaii's 51 Pizza Hut, 34 Taco Bell, and one combination Long John Silver's A&W All American Food restaurants. The franchiser is Yum! Brands Inc. International, based in Singapore.
The company has declined comment on the restaurant deal, but a separate Jardine sale is mentioned in the most recent issue of "Thistle," Jardine's in-house magazine. An article describes the sale of Jardine Restaurant Group's 15 Oliver Super Sandwiches stores and four Ruby Tuesday restaurants. "The Jardine Restaurant Group has decided to focus on its Yum! Brands franchises in Asia," the article read.
Davies' heavy-machinery and food services divisions posted $172 million in sales last year and have a combined 2,224 employees, according to Hawaii Business magazine.
TheoDavies was one of the Big Five companies that dominated business and politics in Hawaii from the late 1800s to the mid-1900s. The other four companies, which all had roots in Hawaii's sugar industry, were Castle & Cooke, Alexander & Baldwin, C. Brewer & Co., and Amfac.
