Dealer news: McGovern wraps 5th acquisition in 6 weeks; Asbury completes Jim Koons deal
McGovern Automotive Group continued its growth Wednesday with its acquisition of Imperial Hyundai in Milford, Mass.
The dealership, renamed McGovern Hyundai of Milford, is the company’s fourth dealership in Massachusetts.
McGovern now operates 29 dealerships in New York, Massachusetts and New Hampshire. The acquisition is the fifth in the past six weeks for the rapidly expanding dealer group.
“We’re thrilled to be bringing the McGovern brand to Milford, and we’re looking forward to giving discerning local drivers the unbeatable service and great deals they crave,” McGovern regional vice president of operations John Kennedy said in a news release. “It’s been an incredible few months for the McGovern Auto Group, and we couldn’t be more excited about what we have in store for the coming year.”
Other recent acquisitions include Jaguar Land Rover Peabody, Genesis of Queensbury, and MHQ of Marlborough, and the company said in a news release there are “new Hyundai and Genesis franchises and another top-tier import dealership coming in early 2024.”
McGovern Auto said it now employs more 1,600 people and has annual revenues of more than $2.2 billion.
Founder and CEO Matt McGovern credited the company’s “phenomenal growth” to its staff and said it is “a testament to their hard work, day in and day out.”
Asbury completes acquisition of Jim Koons Automotive
The blockbuster deal is now done.
Asbury Automotive Group said it has completed its acquisition of Jim Koons Automotive Companies, which had been the nation’s ninth-largest privately-owned dealership group.
In a news release, Asbury said the $1.2 billion deal is the largest auto retail acquisition since 2021. The sale includes 20 dealerships, 29 franchises, six collision centers and one of the highest volume Toyota dealerships in the U.S.
Asbury announced its “definitive agreement” to acquire Koons in September.
“With the completion of this milestone transaction, Asbury is proud to add one of the best run dealership groups in the industry and extend our footprint into the thriving Washington-Baltimore market,” Asbury president and CEO David Hult said in a news release. “Jim Koons’ passion for the car business, as well as his enthusiastic leadership of his group, is evident at every level of the Koons organization.
“Not only are Koons’ 20 dealerships consistent leaders in sales volume and customer satisfaction, they are also renowned for their positive employee and workplace culture, essential values we share at Asbury. We welcome Koons employees to the Asbury family, and are grateful for their hard work and talent, and for the Asbury team in the successful completion of this historic transaction.”
Asbury said the acquisition will add approximately $3 billion in expected annualized revenues. The purchase price includes $740 million of goodwill and $420 million of real estate and leasehold improvements, as well as vehicle inventory (net of floorplan), parts inventory and fixed assets of the dealerships.
The acquisition was funded with borrowings under Asbury’s existing credit facility and cash on hand.
Jim Koons Automotive, founded in 1973, was one of only 13 private groups with more than $3 billion in revenue in 2022.
“We are so pleased to see the successful transition of our company to Asbury, knowing that being part of this sterling organization will provide tremendous career opportunities for our employees and a continuation of exceptional service to our customers and community,” Jim Koons Automotive chairman Jim Koons said. “Koons’ rich 50-year history could not have been achieved without the contributions and support of our stellar employees.”