Asbury Automotive Group Inc. on Friday mentioned it has agreed to spend $1.2 billion to buy Jim Koons Automotive Cos. in a deal that might be one of many largest in auto retail historical past.
The transaction settlement announcement, which can consolidate a prime 25 dealership group into the publicly traded Asbury, comes simply three days after Asbury mentioned it was in talks to purchase the group.
It additionally comes two years after a increase of megadeals within the auto retail house, together with Asbury’s acquisition of the Larry H. Miller Dealerships.
“This acquisition is transformative for our company, enabling Asbury to further expand into one of the country’s top economies in one of its fastest growing regions, with some of the U.S.’ best performing dealerships,” Asbury CEO David Hult mentioned in a press release.
Acquiring Koons would add 20 franchised dealerships, six collision facilities and one used-car retailer to Asbury’s portfolio. The Koons group reported $3.2 billion in income in 2022.
Asbury will fund the acquisition, anticipated to shut within the fourth quarter or early within the first quarter, utilizing money, credit score and current liquidity, based on the assertion.
The approximate $1.2 billion price ticket contains $740 million for the dealerships’ blue sky and about $417 million for the actual property and leasehold enhancements. Blue sky is the intangible worth of a dealership, together with goodwill.
Asbury additionally will purchase new autos, used autos, service loaner autos, mounted belongings, components and provides for a purchase order worth to be decided at closing.
Source: www.autonews.com