Asbury Automotive Group Inc. said it will pay about $3 billion to buy the Larry H. Miller Dealerships group, one of the largest privately owned dealership groups and the eighth-largest dealership group in the country.
Asbury said Wednesday that the deal includes 54 new-vehicle dealerships, seven used-vehicle dealerships, 11 collision centers and Total Care Auto. The Duluth, Ga., retailer said it will help to diversify the company’s Western presence by entering six new states. Asbury said the acquisition would add $5.7 billion in annual revenues to Asbury, the nation’s sixth-largest new-vehicle retailer.
“Larry H. Miller Dealerships is one of the most respected automotive dealer groups in the United States with a strong culture and stewardship mentality,” Asbury CEO David Hult said in a statement. “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.”
Total Care Auto is a leading provider of service contracts and other vehicle protection products that Asbury said is “comprehensively integrated with Larry H. Miller Dealerships.”
Shares of Asbury were up 3.1 percent to $205 in premarket trading.
The transaction follows several other buy-sell megadeals this year as the auto retail industry consolidates.