Georgia-based Asbury Automotive Group, Inc. is acquiring certain assets of Texas' Park Place Dealerships for $1 billion in an all-cash transaction, excluding vehicle inventory.
The deal will expand Asbury's geographic mix to 36 percent of revenue derived from the Texas market. It will additionally convert Asbury’s overall portfolio to about 50 percent of revenue derived from luxury brands.
The operating assets acquired consist of 17 new vehicle franchises, including a Jaguar/Land Rover open point in Austin that is projected to open late in the first quarter of 2020, 15 of which are located in the Dallas-Fort Worth market.
"Park Place is highly regarded as one of the best and most efficient operators of luxury stores in the industry," Asbury President and Chief Executive Officer David Hult said in a press release. "Their portfolio of stores comes with a strong base of loyal clients and 2,100 long-term team members throughout the high-growth Dallas-Fort Worth market. We are also excited to grow our presence in Austin with a Jaguar/Land Rover open point, which is another high-growth luxury market. This acquisition will transform our total portfolio to 50 percent luxury stores and add approximately $2 billion in expected annualized revenues."