DULUTH, Georgia, Sept. 29, 2021 (Gephardt Daily) — Larry H. Miller Dealerships will be sold to the Georgia-based Asbury Automotive Group for $3.2 billion, it was announced Wednesday.
Asbury Automotive Group is one of the largest automotive retail and service companies in the United States, while the Larry H. Miller Group of Companies is the eighth largest dealer group in the U.S., according to an LHMGC press release.
“Larry H. Miller Dealerships is one of the most respected automotive dealer groups in the United States with a strong culture and stewardship mentality,” said David Hult, Asbury’s president and chief executive officer. “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.
“Larry H. Miller Dealerships is a well-run operation with long tenured employees and a senior leadership team equaling over 5,300 passionate team members, all of whom have had a part in building and carrying forward the legacy that Larry H. and Gail Miller founded over 42 years ago. 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 added: “This acquisition will further diversify our total portfolio mix and add approximately $5.7 billion in expected annualized revenues, which positions us well to execute our five-year plan to generate $20 billion in annual revenue by 2025. With these acquisitions, we will exceed our previously published five-year target for mergers and acquisitions within the first year of the plan. We will continue to seek acquisitions that fit our culture and strategy.”
Gail Miller, owner, Larry H. Miller Group of Companies, said: “Since our family’s purchase of a single Utah dealership in 1979, we have been honored to cultivate a strong, values-based culture and customer-first business model within the automotive industry for more than four decades. We feel a great sense of stewardship to our incredible associates and their families, to our loyal customers and partners, and to the communities where we operate. As always, we believe that being in business is a means to doing good, and this transaction will elevate our ability to continue to enrich lives through our philanthropic efforts as well as reinvest in new ventures.”
In late 2020, Asbury embarked on a five-year plan to increase revenue and profitability strategically through organic and acquisitive growth as well as their Clicklane digital car purchasing platform. Asbury currently operates 91 dealerships, consisting of 112 franchises, representing 31 domestic and foreign brands of vehicles. Asbury also operates 25 collision repair centers.
The transaction will diversify Asbury’s geographic mix, with entry into six Western states: Arizona, Utah, New Mexico, Idaho, California, Colorado and Washington, according to the press release.
The operating assets acquired include 54 new vehicle dealerships, seven used vehicle dealerships, and 11 collision centers. Combined, Larry H. Miller Dealerships sells over 115,000 new and used vehicles annually.
“We are proud that Larry H. Miller Dealerships has grown to be one of the largest automotive retailers in the country,” said Steve Starks, chief executive officer of the Larry H. Miller Group of Companies. “Our incredible employees will have the opportunity to be part of Asbury, another well-respected and trusted brand, that brings a national footprint with a best-in-class technology platform. This transaction provides additional opportunities for the LHM Group to further diversify and grow our portfolio of businesses and investments.”
In addition to the dealerships, Asbury will acquire TCA, a leading provider of service contracts and other vehicle protection products.
The aggregate purchase price of $3.2 billion includes approximately $740 million of real estate. The transaction is expected to close in the fourth quarter of 2021 and is subject to automobile factory approvals and other customary closing conditions.
