Asbury Automotive Acquires Larry H. Miller Dealerships, Total Care Auto For $3.2B

Asbury Automotive Group Inc ABG has agreed to acquire Larry H. Miller Dealerships and Total Care Auto (TCA), Powered by Landcar, for an aggregate of $3.2 billion, including $740 million of real estate.
The acquisition will add about $5.7 billion in annualized revenue.
The transaction will expand the company’s presence into six Western states: Arizona, Utah, New Mexico, Idaho, California, and Washington.
The operating assets acquired include 54 new vehicle dealerships, seven used vehicle dealerships, and 11 collision centers.
Asbury expects the acquisition of these entities, assuming the fourth quarter of 2021 closing date and equity financing of $600 million, to be approximately 14% accretive to 2022 EPS, with 2024 EPS accretion expected to be 20%.
Asbury has secured committed bridge financing in support of the acquisition. It held $102.3 million in cash and equivalents as of June 30, 2021.
Price Action: ABG shares closed lower by 2.02% at $198.82 on Tuesday.