BY Fraser Tennant
In what is the largest auto retail acquisition since 2021, US auto dealer Asbury Automotive Group, Inc. is to acquire privately-owned dealership group Jim Koons Automotive Companies for approximately $1.2bn.
Asbury plans to fund the purchase price with existing liquidity, credit facility and cash on hand. The deal is subject to customary closing conditions and expected to close in the fourth quarter of 2023 or early in the first quarter of 2024.
“This acquisition is transformative for our company, enabling Asbury to further expand into one of the country’s top economies in one of its fastest growing regions, with some of the US’ best performing dealerships,” said David Hult, president and chief executive of Asbury. “Koons has an impressive history of achievement in sales and revenue, and is legendary for its emphasis on people and for giving back.”
Founded in 1973, Koons is one of the US’ largest private auto dealership groups and the number one automotive retailer in the Washington-Baltimore region for over 25 years. In 2022, the group retailed more than 61,000 units (26,000 new and 35,000 used) and had over $3bn in revenue. It employs more than 2500 people in 20 locations throughout the Washington DC, Baltimore and Philadelphia region.
“At Koons, it has always been all about people, and we deeply appreciate Asbury’s commitment to continuing this tradition,” said Jim Koons, chairman of Jim Koons Automotive Companies. “Our work with David Hult, and the Asbury team, gives us confidence that not only are our customers in excellent hands, but so are our employees, with opportunities for future growth being a part of Asbury.”
The sale of Koons is one of the most sizeable in auto retail history, including 20 dealerships, 29 franchises and six collision centres. Asbury currently operates 138 dealerships, representing 31 domestic and foreign brands, as well as 32 collision repair centres.
“We are proud to continue what Jim Koons and his exceptional management team expanded upon: an unwavering dedication to excellence in automotive retailing,” concluded Mr Hult. “We expect the Koons dealerships’ profitability to be generally in line with the profitability of Asbury’s dealerships.”
News: Auto dealer Asbury to expand Mid-Atlantic presence with $1.2 billion Jim Koons buy