Asbury Automotive Group Inc. formally expanded into a number of new western states and picked up an estimated $5.7 billion in annualized income after closing Friday on the acquisition of Larry H. Miller Dealerships, a deal introduced in late September.
The $3.2 billion acquisition of Larry H. Miller’s 61 new- and used-vehicle shops additionally provides Asbury a finance-and-insurance merchandise supplier, Complete Care Auto, and may defend the dealership group from a takeover by one other publicly traded rival.
“We’re excited to finish the transformative acquisition of Larry H. Miller Dealerships,” Asbury President and CEO David Hult mentioned in an announcement Friday. “With its sturdy tradition and stewardship mentality, coupled with the flexibility to quickly increase Asbury’s presence into these fascinating, high-growth Western markets, it’s a uncommon alternative.”
Asbury, of Duluth, Ga., ranks No. 6 on Automotive Information‘ record of the highest 150 dealership teams based mostly within the U.S., with retail gross sales of 95,165 new autos in 2020. Larry H. Miller, of Sandy, Utah, was eighth on the record, with 61,097 new-vehicle gross sales final 12 months.
Asbury says it now has 155 dealerships spanning 205 franchises.
The corporate estimated it has added $6.6 billion in annualized income by acquisitions this 12 months, beating its five-year goal of $5 billion in a 12 months.
The Larry H. Miller transaction contains 54 new-vehicle dealerships, seven used-vehicle dealerships, a used wholesale enterprise and 11 collision facilities throughout Arizona, California, Colorado, Idaho, New Mexico, Utah and Washington.
Asbury has mentioned it’s going to maintain the Larry H. Miller identify on the dealerships.
The acquisition will increase Asbury’s presence in Colorado and returns the corporate to California, after promoting what had been its ultimate dealership there in Might 2011, Asbury mentioned. The opposite states are new for the group.
Asbury has mentioned it should promote two Lexus dealerships it didn’t determine following the Larry H. Miller acquisition and the roughly $377-million acquisition of the Denver, Colo.-area Stevinson Automotive group on Dec. 6. Asbury CEO David Hult mentioned high-performing dealership teams can have as much as eight Lexus dealerships nationally underneath framework agreements. Asbury had 5 Lexus dealerships and obtained 5 extra underneath the Stevinson and Larry H. Miller offers.
Hult informed Automotive Information this month that following the 2 acquisitions, Asbury additionally might need to promote a couple of different shops stemming from an possession density subject with one other unnamed producer.
The Asbury deal is the newest megadeal to shut in 2021 and follows acquisitions by Lithia Motors Inc. for Michigan’s Suburban Assortment, Group 1 Automotive Inc.’s deal for the overwhelming majority of Prime Automotive Group and Sonic Automotive Inc.’s buy of RFJ Auto Companions Holdings Inc.
Asbury has mentioned it intends for Larry H. Miller Dealerships President Dean Fitzpatrick and the remainder of the auto platform’s administration group to stay following the sale.
“We clearly need them,” Hult mentioned in September. “That is an especially well-run group.”
Larry H. Miller Dealerships began 42 years in the past when founders Larry Miller and Gail Miller purchased a Toyota retailer in Murray, Utah. Steve Starks, CEO of Larry H. Miller Group of Cos., mentioned the choice to promote the dealership group stemmed from considering that the enterprise had grown as giant because it may with out a stronger digital retail presence and nationwide footprint.
“Our household expresses deep gratitude to the workers of Larry H. Miller Dealerships for his or her ongoing dedication to our group over the previous 42 years,” LHM Group proprietor Gail Miller mentioned in an announcement Friday. “Our workers have frequently exemplified our values of onerous work, stewardship, integrity and repair. Their dedication to our prospects and our communities has allowed us to change into the second largest privately held automotive group within the nation.”
She mentioned the Miller household will proceed “our mission of enriching lives by reinvestments in new enterprise alternatives and continued philanthropy.”
Along with the Larry H. Miller and Stevinson Automotive transactions, Asbury purchased a minimum of three different dealerships this 12 months: Kahlo Chrysler-Dodge-Jeep-Ram in Noblesville, Ind., and two Colorado shops: Greeley Subaru, now renamed Mike Shaw Subaru Greeley, and Arapahoe Hyundai-Genesis of Arapahoe. It additionally bought BMW of Charlottesville in Virginia.
Asbury has estimated that incorporating Larry H. Miller and the opposite 2021 dealership purchases would make it the fourth-largest new-vehicle retailer when measured by professional forma annualized revenues. Primarily based on a authorities submitting in early November, Asbury anticipates having an roughly $16 billion annualized income stream.
Stevinson and Larry H. Miller represented the final acquisitions Asbury had underneath contract up to now, Hult informed Automotive Information on Dec. 7.
“We’ll be specializing in integrating all of these items for some time,” he mentioned.
— Automotive Information reporters Jack Walsworth and Melissa Burden contributed to this report.
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