Market Overview

Jefferies Financial Group Closes Sale of Garcadia


Jefferies Financial Group Inc. (NYSE:JEF) today announced that it has
closed its previously announced sale of 100% of its equity interest in
Garcadia, its auto dealer group, to its current partners, the Garff
family. Jefferies received $375 million in cash from the dealer group
sale, and expects to close the agreed sale of the associated real estate
later this month for a further $48 million in cash, net of the mortgage
on the real estate.

The estimated pre-tax gain resulting from these sales, which will be
included in the third quarter results of Jefferies, is approximately
$220 million. Jefferies' CEO, Rich Handler, and President, Brian
Friedman, noted, "This is an opportune time for us to divest our auto
dealer group. We thank CEO Brett Hopkins and the Garff family for a
successful partnership and wish them well."

View Comments and Join the Discussion!