DULUTH, Ga. — Asbury Automotive Group Inc. entered into a definitive agreement to acquire certain assets of Park Place Dealerships, one of the country’s largest luxury dealer groups, for $1 billion in an all-cash transaction, excluding vehicle inventory, the company announced.
The operating assets acquired include 10 dealerships housing 17 new vehicle franchises, 15 of which are located in the Dallas/Fort Worth market: three Mercedes-Benz, two Lexus, two Jaguar, two Land Rover, one Porsche, one Volvo, one Bentley, one Rolls Royce, one McLaren, one Maserati, one Karma, and one Sprinter. The 17th franchise is a Jaguar/Land Rover point in Austin, Texas, that is expected to open late in the first quarter of 2020.
Three of Park Place’s stores are ranked among Mercedes-Benz, Porsche, and Bentley’s top 10 U.S. stores by volume. The JLR store and both Lexus dealerships are ranked in their factories’ top 15, and the Volvo store is ranked in the top 20.
The transaction will increase Asbury’s geographic mix to 36% of revenue derived from the Texas market and approximately 50% of revenue derived from luxury brands.
Asbury currently operates 88 rooftops and is ranked as America’s No. 7 auto retailer. Executives noted the transaction will increase the group’s geographic mix to 36% of revenue derived from the Texas market and approximately 50% of revenue derived from luxury brands. Asbury President and CEO David Hult said the acquisition will add approximately $2 billion in annual revenue.
“Park Place is highly regarded as one of the best and most efficient operators of luxury stores in the industry,” Hult said. “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, Texas, with a Jaguar/Land Rover open point, which is another high growth luxury market.”
Originally posted on Auto Dealer Today