Asbury Buys Park Place

By Staff Writer July 08, 2020

Asbury Automotive Group, Inc. entered into a definitive agreement to acquire certain assets of Park Place Dealerships, one of the country’s largest and most prominent luxury dealer groups for $685 million of goodwill and approximately $50 million for parts, fixed assets, and leaseholds, excluding vehicle inventory.

“We have seen our new and used volume sequentially improve each week in May and June with higher profit per vehicle,” said David Hult, Asbury’s president and chief executive officer. “We have also seen our Parts and Service business improve in June as the economy gradually opens-up. Strong May and June performance, along with cost restructuring efforts, have driven higher profitability and cash flow, giving us conviction to move forward with a revised Park Place acquisition.

“In March, we had to step away from the transaction due to lack of visibility around COVID-19, but after seeing the rebound off the April low, we can proceed with a more refined deal under more flexible and favorable terms. Park Place is highly regarded as one of the best and most efficient operators of luxury stores in the industry.” 

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Last modified on Wednesday, 08 July 2020 14:31

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