Asbury Automotive Group, Inc. (ABG) has agreed to acquire certain assets of Park Place Dealerships for $1 billion, excluding vehicle inventory. Park Place, a luxury dealer group, has a mix of large dealerships with revenue comprised of 38% Mercedes-Benz, 32% Lexus, 11% Jaguar/Land Rover, 7% Porsche, 4% Volvo, and 8% other premier luxury brands.
"Park Place is highly regarded as one of the best and most efficient operators of luxury stores in the industry. Their portfolio of stores comes with a strong base of loyal clients and 2,100 long-term team members throughout the high growth Dallas/Fort Worth market. This acquisition will transform our total portfolio to 50% luxury stores and add approximately $2 billion in expected annualized revenues."
Asbury expects the acquisition of Park Place to be accretive to 2020 earnings per share by approximately $1.00 to 1.25, excluding the impact of transaction costs. The company also expects to incur pre-tax costs associated with the transaction of approximately $0.05 to $0.10 per share in the fourth quarter of 2019.
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