Asbury Automotive Group has inked an agreement of about $700 million to acquire Park Place Dealerships.
With Asbury’s standing as one of the largest automotive retail and service companies in the country and Park Place’s ranking as one of the country’s largest and most prominent luxury dealerships, the agreement is sending early shockwaves through the industry.
"We are pleased our business model and performance allowed us to navigate the current environment and re-engage on a highly strategic acquisition that will make us an even stronger company,” Asbury President and Chief Executive Officer David Hult said in a press release. "Park Place is highly regarded as one of the best and most efficient operators of luxury stores in the industry. Their portfolio of stores comes with a strong base of loyal clients and long-tenured team members throughout the high growth Dallas/Fort Worth market. This acquisition will enhance our total portfolio and add approximately $1.7 billion in expected annualized revenues.”
The deal calls for Asbury to receive 12 new vehicle franchises spread across the Dallas/Fort Worth area. According to PR Newswire, the deal is also expected to increase Asbury's geographic mix to more than one-fourth of the overall revenue generated from from the Texas market and further diversify the company's portfolio to as much as 49% of revenue derived from luxury brands.
Owners of some of the country’s most high-end dealerships, Park Place has large dealerships with revenue comprised of 38% Mercedes-Benz, 37% Lexus, 12% Jaguar/Land Rover, 9% Porsche and 5% Volvo. Four of its stores, Mercedes-Benz, Lexus, Porsche and Jaguar/Land Rover, rank among the top 10 stores in volume in the country.
Headquartered in Duluth, Georgia, Asbury is a Fortune 500 company with atlas 83 dealerships and 102 franchises, representing 31 domestic and foreign brands of vehicles. Priding itself on “offering customers an extensive range of automotive products and services,” Asbury also operates 24 collision repair centers.
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