The Guthrie Bros car dealership, which has operated in Angus for 70 years, will close this summer.
Business owners George and Derek Mitchell have accepted an offer from EG Group for the purchase of their Ford dealership in Montrose and neighbouring petrol station.
Blackburn-based EG Group operates more than 4,700 petrol stations across Europe and America.
The firm will keep the petrol station and develop the large site to offer a drive through coffee shop.
A statement from Guthrie Bros said: “The directors of Guthrie Bros, George and Derek Mitchell can confirm they have accepted an offer from EG Group for the purchase of their filling station and land on North Esk Road, Montrose.
“EG Group are to retain the fuel side of the business, developing it further along with bringing new retail brands to the site creating a modern, wider retail experience and greater employment.
“There will be a significant investment from EG Group in this site.
“As the petrol filling station and convenience store will be sold as a going concern those employed full time in this side of the business will move across to EG Group on July 1.
“Motor dealerships are not part of their portfolio and, although all possibilities were explored, this means Guthrie Bros Ford will unfortunately close at a similar timeframe which has been a tough decision for the directors.”
The directors added: “Staff and customers are at the forefront of our minds and we look to do everything possible to assist everyone going forward.”
The Guthrie Bros dealership was established in 1949.
A letter to the firm’s customers issued this week will state the firm expects to continue to service vehicles up to early May. The company does not anticipate being able to supply new car orders for delivery after the start of June.
The sale price of the acquisition has not been disclosed.
A spokesman for EG Group said: “I can confirm we are working with the current owner of the Montrose site.
“We are hoping to submit a planning application to redevelop the site in the next couple of months which will include a drive through coffee offer.
“We have certain criteria when we look at sites, which includes 20,000 trips a day on the vehicle network and good roadside promenance.”
EG Group is also developing a petrol station, retail unit, restaurant and associated parking next to Angus Council’s headquarters in Forfar.