Asbury Automotive Group Completes Acquisition of Jim Koons Automotive Companies

Asbury Automotive Group, Inc. (NYSE: ABG), one of the U.S.’ largest automotive retail and service companies, has completed the acquisition of Jim Koons Automotive Companies, the ninth largest privately-owned dealership group in the U.S. The sale includes 20 dealerships, 29 franchises, six collision centers and one of the highest volume Toyota dealerships in the US.

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“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, an economically robust and fast growing region of our country,” said David Hult, Asbury's President and Chief Executive Officer. “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’ twenty 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.”

The acquisition will add approximately $3 billion in expected annualized revenues. Asbury anticipates the Koons’ dealership profitability to be generally in line with the profitability of Asbury’s dealerships. The purchase price of approximately $1.2 billion includes $740 million of goodwill, $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.

Founded in 1973, Jim Koons Automotive Companies was one of only 13 private groups with over $3 billion in revenue in 2022. The group, comprised of top volume franchises including Toyota, Lexus, Mercedes-Benz, Ford, Kia, Hyundai, Volvo, Stellantis and General Motors, is the dominant retailer in the thriving Washington-Baltimore market, the 4th largest combined statistical area in the U.S. by population per 2020 census data. Koons’ revenue per dealership ranked 10th overall in 2022 according to Automotive News, and 5th in the U.S. for groups with greater than $2 billion in revenue.