Asbury Automotive Group, Inc., has scooped up Larry H. Miller Dealerships, expanding one of the largest automotive retail and service companies in America westward.
A subsidiary of Larry H. Miller Group of Companies (LHM Group), Larry H. Miller Dealerships is the eighth-largest dealer group in the U.S.
Asbury also added Total Care Auto, Powered by Landcar in the deal that will add approximately $5.7 billion in annualized revenue.
This acquisition means Asbury stretches coast to coast while likely boosting the company’s Clicklane omni-channel platform.
The acquisition that cost $3.2 billion — including $740 million for real estate — and should be completed during the fourth quarter of this year gives Asbury 11 new collision centers, along with 54 new vehicle dealerships and seven used dealerships.
“Larry H. Miller Dealerships is one of the most respected automotive dealership groups in the United States with a strong culture and stewardship mentality,” said Asbury President and Chief Executive Officer David Hult in a company release. “This acquisition is a unique opportunity to rapidly expand Asbury’s presence into these desirable, high-growth Western markets with strong accretion from [Day 1] with this impressive group and its rich history.”
Total Care Auto, Powered by Landcar offers paintless repair contracts and appearance protection contracts along with extended service and prepaid maintenance and other contracts.
This deal will give Asbury entry into Arizona, California, Idaho, New Mexico, Utah and Washington, and gives the company a boost in Colorado.
“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 said. “Our now national footprint, complemented by our digital purchasing capabilities in Clicklane, creates a truly expansive multi-channel platform of dealerships.”
Larry H. Miller Dealerships has been selling over 115,000 new and used vehicles yearly. The company started in Utah in 1979 with a single lot. Steve Starks, the CEO of the Larry H. Miller Group of Companies, said this sale allows his company “additional opportunities for the LHM Group to further diversity and grow our portfolio of business and investments.”
A Fortune 500 company headquartered in Duluth, Ga., Asbury has had a 5-year strategic growth plan that should now bring its company $20 billion in added revenue by 2025, Hult said. Asbury holds other acquisition contracts that are expected to add $900 million in additional annual revenues.
“With these acquisitions, we will exceed our previously published five-year target for M&A within the first year of the plan,” Hult said.
And Asbury doesn’t seem to be finished.
“We will continue to seek acquisitions that fit our culture and strategy,” Hult said.
Featured image: Asbury (via Indeed)
Asbury President and Chief Executive Officer David Hult (Asbury, via Indeed)
Asbury (via Indeed)