"We are pleased our business model and performance allowed us to navigate the current environment and re-engage on a highly strategic acquisition that will make us an even stronger company," said David Hult, Asbury's president and CEO. "We have seen our new and used volume sequentially improve each week in May and June with higher profit per vehicle. We have also seen our parts and service business improve in June as the economy gradually opens up.
"Strong May and June performance, along with cost restructuring efforts, have driven higher profitability and cash flow, giving us conviction to move forward with a revised Park Place acquisition," Hult continued. "In March, we had to step away from the transaction due to lack of visibility around COVID-19, but after seeing the rebound off the April low, we can proceed with a more refined deal under more flexible and favorable terms.
"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 long-tenured team members throughout the high growth Dallas/Fort Worth market," Hult added. "This acquisition will enhance our total portfolio and add approximately $1.7 billion in expected annualized revenues.
"We are thankful to all of our employees who have worked so hard over the last few months to manage through this pandemic. The talent in our organization and the resilience of the dealer model have put us in a position to acquire Park Place and become a more diversified company."
The operating assets to be acquired include 12 new vehicle franchises, all of which are located in the attractive Dallas/Fort Worth market: three Mercedes-Benz, three Sprinter, two Lexus and one each Jaguar, Land Rover, Porsche and Volvo.
The acquisition will also include the Park Place auto auction and two collision centers.
Source: Asbury Automotive Group