Asbury Automotive Group Inc. has agreed to acquire certain assets of luxury-car dealer Park Place Dealerships for $1 billion in an all-cash transaction, excluding vehicle inventory, according to a Dec. 12 release.
Park Place sells Daimler AG's Mercedes-Benz, cars by Porsche AG and Bentley Motors Ltd., as well as Jaguar Land Rover Automotive PLC and Toyota Motor Corp.'s Lexus models.
The assets include 17 new vehicle franchises, 15 of which are in the Dallas-Fort Worth market. One of the assets is expected to open late in the first quarter of 2020.
The acquisition would help Asbury grow its presence in Austin, Texas, and transform its portfolio to 50% luxury stores and add about $2 billion in expected annualized revenues, the company said. The deal would also expand its geographic mix to 36% of revenue derived from the Texas market, Asbury added.
The purchase price includes $785 million of goodwill, about $215 million for real estate and leasehold improvements, and about $30 million for parts and fixed assets, the company said.
The deal is expected to close in the first quarter of 2020, subject to customary closing conditions.
BofA Securities served as Asbury's financial adviser in the transaction, while Park Place tapped the Presidio Group as its financial adviser.