DULUTH, Ga. –
To use store vernacular, Asbury Automotive Group’s acquisition of Park Place Dealerships finally rolled over the curb this week.
Asbury announced late Monday afternoon that it completed its deal to secure Park Place, adding approximately $1.7 billion in annual revenues.
Asbury president and chief executive officer David Hult elaborated about how the dealer group overcame pandemic-triggered challenges to complete the acquisition first announced back in December, nearly scrapped in March before being revitalized in July.
“Park Place remains one of the best operators of luxury stores in the industry. Their portfolio of stores comes with a strong base of loyal clients and long-term team members throughout the high growth Dallas/Fort Worth market,” Hult said.
“We are thankful to both the Asbury and Park Place employees who have worked tirelessly over the last few weeks to complete this transaction,” he continued. “The talent in both organizations and the resilience of the dealer model have put us in a position to become a stronger and more diversified company. I am pleased to welcome all our new teammates at Park Place.”
Before the development, Park Place owned and operated what Asbury described as a portfolio of high volume, award-winning luxury dealerships with premier real estate. Four stores are ranked among the Top 10 stores in volume in the country amongst their franchise: Mercedes-Benz, Lexus, Porsche and the Jaguar/Land Rover.
In addition, the other Lexus store and the Volvo store are ranked in the Top 20 stores in volume nationally, according to Asbury.
“The luxury segment has historically delivered strong and stable margins that are significantly above those achieved by mid-line import and domestic brands,” Asbury said in a news release. “Luxury stores also tend to be more resilient in economic downturns, and have higher and more stable margins, fewer dealers nationwide and a higher portion of gross profit from parts and service.”
The dealer group also highlighted the transaction will increase Asbury’s geographic mix to 28% of revenue derived from the Texas market and will further diversify the company’s overall portfolio from 36% to approximately 49% of revenue derived from luxury brands.
Presidio was the exclusive advisor to Park Place on the sale.