Asbury Automotive Group Inc. said it will pay $3.2 billion to buy the Larry H. Miller Dealerships group, one of the largest privately owned dealership groups and the eighth-largest dealership group in the country.
Asbury said Wednesday that the deal includes 54 new-vehicle dealerships, seven used-vehicle dealerships, 11 collision centers and Total Care Auto. The Duluth, Ga., retailer said it will help to diversify the company’s Western presence by entering six new states. Asbury said the acquisition would add $5.7 billion in annual revenues to Asbury, the nation’s sixth-largest new-vehicle retailer.
“Larry H. Miller Dealerships is one of the most respected automotive dealer groups in the United States with a strong culture and stewardship mentality,” Asbury CEO David Hult said in a statement. “This acquisition is a unique opportunity to rapidly expand Asbury’s presence into these desirable, high-growth Western markets with strong accretion from day-one, with this impressive group and its rich history.”
The acquisition also includes Total Care Auto, a finance and insurance provider of vehicle service contracts, prepaid maintenance contracts and other vehicle protection items that Larry H. Miller sells through its dealerships. Asbury believes this addition will boost profitability and cash flow.
Shares of Asbury were up 3.1 percent to $205 in premarket trading.
The transaction follows several other buy-sell megadeals this year as the auto retail industry consolidates.
Asbury, which bought luxury-brand Park Place Dealerships stores in 2020, has said it aims to add outlets representing $5 billion in revenue over five years. With this deal, it will have exceeded that target. Asbury said it also has deals to buy dealerships representing another $900 million in annual revenues under contract.
The deal is expected to close in the fourth quarter of this year, pending regulatory and other approvals, according to a regulatory filing.
The Larry H. Miller group dates back to 1979.
“We look forward to becoming part of one of the nation’s leading and largest automotive and retail companies,” Dean Fitzpatrick, president of Larry H. Miller Dealerships, said in a statement. “Asbury is like-minded in terms of our values and stewardship. Their vision to be the most guest-centric company in the industry aligns with our guiding principle to be the best place in town to work and the best place in town to do business.”
Larry H. Miller of Sandy, Utah, ranks No. 8 on Automotive News‘ list of the top 150 dealership groups based in the U.S., retailing 61,097 new vehicles last year.
Asbury ranks No. 6 on that list, retailing 95,165 new vehicles in 2020. It retailed 80,537 used vehicles for the same period, ranking it No. 9 on Automotive News‘ list of the top 100 used-vehicle retailers.