Arrow Hyundai businesses in Bridgend and Swansea have been sold to Hutchings Motor Group for an undisclosed sum.
Hutchings, which already represents Hyundai and Vauxhall in Pontypridd near Cardiff, has bought the two businesses and retained all staff.
John Hutchings, chairman of Hutchings Motor Group, said: “We are extremely pleased to have increased our Hyundai representation across the South Wales M4 corridor, after operating our existing Hyundai dealership in Treforest since 2012.
"The acquisition fits very well with our long term strategy and we are looking forward to welcoming our new colleagues into the business.”
David Kendrick, partner at UHY Hacker Young, which advised on the deal, said: “This purchase by Hutchings gives them some real scale with Hyundai in that market area.
"The Arrow business has been established for a number of years and I have no doubt that John and his son Stephen will continue to grow the businesses further.
"I believe we will continue to see more and more transactional activity and this deal highlights the fact that some family businesses feel they should be expanding and acquring market areas to protect themselves and benefit from additional scale.”
Arrow Automotive retains a Ford site in Gwent.