What’s Going on with Asbury Automotive Group?
Asbury Automotive Group (ABG) announced today, Sept. 29, that it has signed a definitive agreement with Larry H. Miller Group of Companies, or LHM Group, to acquire Larry H. Miller Dealerships, as well as Total Care Auto, Powered by Landcar. As of 09:40 am EDT this morning, ABG stock increased 0.64% in value, up to $200.10 per share.
What Does This Mean for ABG?
Larry H. Miller Dealerships is the eighth largest dealer group in the United States. Asbury Automotive Group expects its definitive agreement with LHM Group to generate significant value for the company's stockholders by adding approximately $5.7 billion in annualized revenue.
“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,” Asbury CEO David Hult remarked.
“Larry H. Miller Dealerships is a well-run operation … We are thrilled to grow our presence in these states that we believe have appealing economic and demographic growth opportunities while broadening our geographic reach,” Hult continued. “Our now national footprint, complemented by our digital purchasing capabilities in Clicklane [for buying and selling cars], creates a truly expansive omnichannel platform of dealerships."
ABG has a Short-Term Technical Rank of 65. Find out what this means to you and get the rest of the rankings on ABG!
Asbury Automotive Group is a regional collection of automobile dealerships that went public in March 2002. The company operates over 90 stores with associated parts and service departments and 25 collision centers. About 80% of new-vehicle revenue is from luxury and import brands. Asbury also offers third-party financing and insurance products. Asbury operates in 9 states (mostly Texas and the Southeast), and the company entered Colorado in 2019. Its store brands include David McDavid and Park Place in Texas, Plaza in Missouri, and Nalley and Crown in the southeastern U.S. Asbury generated $7.1 billion of revenue in 2020 and is based in the Atlanta area.
