Asbury Automotive Group has agreed to buy Larry H. Miller Dealerships and Total Care Auto from the Larry H. Miller Group of Companies, the retailer announced Wednesday.

The acquisition — which has a $3.2 billion aggregate purchase price that includes roughly $740 million in real estate — would bring one of the country's largest dealership groups and its more than five dozen Western U.S. stores into the Asbury family, along with a service contract and vehicle protection product provider.

The purchase would add annualized revenues of roughly $5.7 billion.

It would also bring Arizona, Utah, New Mexico, Idaho, California and Washington to Asbury’s footprint, and increase the retailer’s presence in Colorado. The 60-plus locations added to the Asbury group would include 54 franchised dealerships, seven used-car stores and 11 collision centers.

“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 president and chief executive officer David Hult said in a news release. “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.”

Hult added: “Larry H. Miller Dealerships is a well-run operation with long tenured employees and a senior leadership team equaling over 5,300 passionate team members, all of whom have had a part in building and carrying forward the legacy that Larry H. and Gail Miller founded over 42 years ago.

“We are thrilled to grow our presence in these states that we believe have appealing economic and demographic growth opportunities while broadening our geographic reach. Our now national footprint, complemented by our digital purchasing capabilities in Clicklane, creates a truly expansive omni-channel platform of dealerships,” he said.

“This acquisition will further diversify our total portfolio mix and add approximately $5.7 billion in expected annualized revenues, which positions us well to execute our five-year plan to generate $20 billion in annual revenue by 2025. With these acquisitions, we will exceed our previously published five-year target for M&A within the first year of the plan. We will continue to seek acquisitions that fit our culture and strategy.

“We believe that this acquisition is truly transformative for Asbury, and we are honored to be the stewards of Larry and Gail’s vision. Additionally, we expect this acquisition to be highly accretive to earnings per share in 2022 and beyond.”

The deal also includes the purchase Total Care Auto, Powered by Landcar.

“TCA is comprehensively integrated with Larry H. Miller Dealerships and presents a compelling opportunity for Asbury to enter this profitable F&I business,” Hult said. “Like the dealerships, this service contract company is extremely well run. TCA has historically delivered 20%+ EBITDA margins on average.”

The acquisition is expected to close in the fourth quarter.

“Since our family’s purchase of a single Utah dealership in 1979, we have been honored to cultivate a strong, values-based culture and customer-first business model within the automotive industry for more than four decades,” Larry H. Miller Group of Companies owner Gail Miller said. “We feel a great sense of stewardship to our incredible associates and their families, to our loyal customers and partners, and to the communities where we operate.

“As always, we believe that being in business is a means to doing good, and this transaction will elevate our ability to continue to enrich lives through our philanthropic efforts as well as reinvest in new ventures.”

Larry H. Miller Group of Companies CEO Steve Starks added: “We are proud that Larry H. Miller Dealerships has grown to be one of the largest automotive retailers in the country. Our incredible employees will have the opportunity to be part of Asbury, another well-respected and trusted brand, that brings a national footprint with a best-in-class technology platform. This transaction provides additional opportunities for the LHM Group to further diversify and grow our portfolio of businesses and investments.”