CARY, N.C. -

Several dealership groups did more than just retail vehicles to finish up 2021.

From Asbury Automotive Group completing one of the biggest acquisitions of the year to Sonic Automotive expanding its used-vehicle enterprise to Key Auto Group broadening its diverse business portfolio, these operations had a busy December.

First surfacing at the end of September, Asbury needed a little less than 90 days to complete the previously announced acquisition of the Larry H. Miller Dealerships and Total Care Auto, powered by Landcar.

In the process, Asbury added 54 new-vehicle dealerships, seven used-vehicle dealerships, 11 collision centers, a used-vehicle wholesale business and an F&I product provider.

Asbury projected the LHM acquisition will add approximately $5.7 billion in annualized revenues.

“We are excited to complete the transformative acquisition of Larry H. Miller Dealerships. With its strong culture and stewardship mentality, coupled with the ability to rapidly expand Asbury’s presence into these desirable, high-growth Western markets, it is a rare opportunity,” Asbury president and chief executive officer David Hult said in a news release.

“Larry H. Miller Dealerships is a well-run operation with a rich history, and we are honored to be the stewards of Larry and Gail’s vision,” Hult continued. “We have enjoyed getting to know the Larry H. Miller team members during this acquisition process and look forward to working together to continue the journey.”

LHM Group owner Gail Miller reflected on what the journey to this juncture has been like.

“Our family expresses deep gratitude to the employees of Larry H. Miller Dealerships for their ongoing commitment to our organization over the past 42 years,” Miller said. “Our employees have continually exemplified our values of hard work, stewardship, integrity and service. Their dedication to our customers and our communities has allowed us to become the second largest privately held automotive group in the nation. We treasure them, our loyal customers, many partners and deep friendships built during four decades in the automobile business.

“David Hult and his team have been exceptional to work with and we appreciate their approach and care during this transaction. Our family looks forward to continuing our mission of enriching lives through reinvestments in new business opportunities and continued philanthropy,” Miller continued.

This acquisition diversifies Asbury's geographic mix, with entry into six Western states: Arizona, Utah, New Mexico, Idaho, California and Washington, and adds to its growing Colorado footprint. LHM Dealerships portfolio mix of largely domestic brands has historically delivered strong and stable margins in these markets.

LHM dealerships sold approximately 120,000 new and used vehicles during the 12-month stretch that ended Sept. 30.

“We couldn’t be more pleased with the approach and stewardship Asbury Automotive Group has taken during this process,” said Steve Starks, chief executive officer of LHM Group. “We know they are people-focused, which includes their associates and customers. Our employees now have an opportunity to continue building an exciting future with a leading automotive group that will have coast-to-coast operations.

“We want to thank Dean Fitzpatrick and the LHM Dealerships leadership team for their incredible work and tenacity throughout this transaction, as well as their constant efforts over the decades to grow the automotive business. Moving forward, the LHM Group expects to further diversify and grow our portfolio of operating businesses and investments,” Starks continued.

In addition to the dealerships, Asbury acquired Total Care Auto (TCA), a provider of service contracts and other vehicle protection products; a move the company sees as delivering enhanced profitability and cash flow.

“TCA is comprehensively integrated with Larry H. Miller Dealerships and presents a compelling opportunity for Asbury to generate significant additional operating income by activating this captive top-quality F&I products provider across our entire, now national, store footprint. Like the dealerships, this service contract company is extremely well run.” Hult said.

“Our now national footprint with our digital retailing capabilities in Clicklane and the full reach of TCA create a truly expansive platform of dealerships,” he added.

Fitzpatrick, president of LHM Dealerships, offered this perspective on what the entire company will be like going forward.

“We are excited to complete this transaction and to join Asbury,” Fitzpatrick said. “Our team is proud to share in the heritage and foundation created by Larry and Gail, and the entire Miller family. We are grateful for the opportunities they provided to our employees and their families.

“It is with much admiration and appreciation to the Millers and the LHM Group that we now take our first step forward as part of Asbury, a well-respected and employee-focused national leader. We know our LHM Dealerships customers will continue to experience exceptional service,” Fitzpatrick went on to say.

Sonic continues EchoPark expansion in Tennessee

Three days before Christmas, Sonic announced the opening of its new EchoPark delivery center in Chattanooga, the fourth-largest metropolitan area in Tennessee.

Located near the Georgia border, Sonic highlighted the Chattanooga Delivery Center is EchoPark’s third location in Tennessee, following the opening of the Knoxville delivery center and Nashville retail sales center in 2020.

The company added the new Chattanooga delivery center is also EchoPark’s 35th location to date, continuing the brand’s expansion toward a nationwide distribution network that is expected to reach 90% of the U.S. population and generate $14 billion in revenues by 2025.

“Our new delivery center in Chattanooga is an important part of EchoPark’s ongoing growth strategy, and further enhances our expanding regional and national footprint,” said David Smith, chief executive officer of Sonic Automotive and EchoPark Automotive. “With three strategic locations in Tennessee, guests have multiple options to experience the EchoPark difference no matter where they live in the region.”

Key Auto adds Thomas Chevrolet Buick

According to a news release from Performance Brokerage Services distributed last week, the dealership brokerage firm announced the sale of Thomas Chevrolet Buick in Perry, Fla., from Cal Thomas to Key Auto Group.

Thomas Chevrolet Buick was established in 1972 by Cal Thomas’ father, Lewis Thomas.

“Deciding to sell the dealership that my father purchased almost 50 years ago was not an easy decision,” Cal Thomas said in the news release. “I would like to thank our loyal customers for their support over five decades, and all the staff who became like family to my brother Al Ray and me.”

Key Auto Group owner Anthony DiLorenzo, began his career in the automotive industry in 1986 as a sales associate at Edwards Toyota. Key Auto Group was established in 1994 with the acquisition of Somerset Auto Center, and then added Portsmouth Chevrolet in 1997.

Over the past 11 years, the company continued to grow, adding additional automotive dealerships, collision centers, a brewery, a rental car company and fitness centers.

DiLorenzo has set the vision and mission for the entire group of businesses, which has grown to more than 400 employees.

“Our group had been looking to expand into the Southeast and was very familiar with Performance Brokerage Services,” Key Auto Group regional vice president Todd Jackson said in the news release. “After several discussions, Courtney Bernhard was able to successfully negotiate a deal with Cal Thomas of Thomas Chevrolet. We are very excited to help grow the dealership and support the community.

“We look forward to working with Courtney Bernhard and George Chaconas on more dealership acquisitions in the near future,” Jackson added.

The dealership will remain at its current location at 2128 South Byron Butler Parkway in Perry and has been renamed to Key Chevrolet Buick of Perry.

Chaconas, the Southeast partner for Performance Brokerage Services, served as the exclusive advisor for this transaction.

“I had the pleasure of meeting Cal Thomas about five years ago and discussed potentially selling his family’s automotive dealership. I am happy that we were able to identify a buyer so that Cal and his family could hand over their legacy of almost 50 years, allowing Cal and his brother to move into the next chapter of their lives and enjoy retirement.

“Courtney Bernhard and I look forward to helping Key Auto Group grow throughout the Southeast and thank everyone involved for making this a smooth transaction,” Chaconas went on to say.