Asbury Automotive Group has agreed to buy Park Place Dealerships for $1 billion cash, excluding inventory, the public retailer announced Thursday.
The deal gives Asbury a boost both in Texas and within the luxury market.
Park Place’s operating assets include17 franchises, including 15 in the Dallas-Fort Worth market. One of those 17 franchises is an open-point Jaguar/Land Rover dealership set to open in the first quarter in Austin, Texas.
All told, the portfolio includes three Mercedes-Benz, two Lexus, two Jaguar and two Land Rover franchises, plus one franchise each of Porsche, Volvo, Bentley, Rolls Royce, McLaren, Maserati, Karma and Sprinter.
Texas would represent 36% of revenue for Asbury following the deal and luxury brands would represent 50% of the dealer group’s revenue.
“Park Place is highly regarded as one of the best and most efficient operators of luxury stores in the industry,” Asbury president and chief executive officer David Hult said in a news release.
“Their portfolio of stores comes with a strong base of loyal clients and 2,100 long-term team members throughout the high growth Dallas/Fort Worth market,” he said.
“We are also excited to grow our presence in Austin, Texas with a Jaguar/Land Rover open point, which is another high growth luxury market. This acquisition will transform our total portfolio to 50% luxury stores and add approximately $2 billion in expected annualized revenues.”
Included in the price is $785 million in goodwill, roughly $215 million for real estate and leasehold improvements, plus about $30 million for parts and fixed assets. The company anticipate the deal will close in the first quarter.