AutoNation Inc. strategies to promote 17 collision centers — or about a quarter of its collision center rooftops — to Caliber Holdings in a transaction slated to shut in the fourth quarter.

The auto retail huge, in a late Monday regulatory filing, said it inked the settlement with Caliber on Oct. 12. The offer features a “lengthy-expression settlement” in which “particular AutoNation shops” would promote sections and refer enterprise to the collision centers.

Economical terms were being not disclosed.

Caliber, launched in 1997, has extra than one,400 spots. It has collision outlets in 36 states, plus auto repair amenities in Texas and auto glass repair and replacement solutions, according to its web site.

“AutoNation continues to be committed to its collision enterprise and adhering to the closing of the transaction will carry on to have and work the biggest collision center footprint between its automotive retail friends with 55 collision centers located from coast-to-coast, together with the collision center that the enterprise not too long ago obtained in Hilton Head, S.C.,” AutoNation said in the filing.

AutoNation did not detect the collision centers it is providing in the filing and did not reply to requests for comment. Caliber also did not instantly comment.

AutoNation, the nation’s biggest new-auto retailer, said the 17 collision centers’ gross earnings represented a lot less than .5 % of its total gross earnings for the duration of the 1st 6 months of the 12 months. AutoNation acquired extra than $2.3 billion in gross income for the duration of that time.

Collision centers are component of AutoNation’s manufacturer extension technique. In slide 2016, AutoNation, then with 70 collision centers, said it preferred to enhance that depend by at least 18 in excess of two years.

Past 12 months, AutoNation exited the aftermarket collision sections enterprise — another piece of its manufacturer extension technique — as component of a charge-chopping and effectiveness shift.

In 2020, AutoNation offered two collision centers and by the 1st 50 percent of 2021 offered another two. It finished June with seventy two collision centers.

AutoNation of Fort Lauderdale, Fla., ranks No. one on Automotive News‘ record of the top rated one hundred fifty dealership teams based in the U.S., retailing 249,654 new cars in 2020.