Asbury Automotive Group has now fully acquired Jim Koons Automotive Companies, one of the largest privately-owned dealership groups in the U.S., for $1.2 billion.
The sale brings 20 dealerships representing 29 franchises under the Asbury Automotive umbrella, including one of the top-performing U.S. Toyota storefronts and six collision centers. The $1.2 billion price tag was comprised of $740 million in goodwill and $420 million in real estate, leasehold improvements, vehicle and parts inventory and fixed assets. According to its website, Asbury Automotive operates 139 new car storefronts across 14 states alongside seven used car dealerships. The company announced its plans to acquire Jim Koons Automotive this September.
Through its acquisition, Asbury Automotive expects to generate roughly $3 billion in additional yearly revenue. Now in its 50th year of operation, Jim Koons Automotive has frequently ranked in the top ten privately-owned dealership groups by sales and was one of 13 retailers to earn $3 billion in revenue in 2022. It is also regarded as one of the best retail automotive employers and recently paid $7 million in tenure bonuses to team members with more than ten years of service. The company was represented by buy-sell advisory Kerrigan Advisors.
In a statement, Jim Koons, chairman of the dealership group, expressed his pleasure over the acquisition and noted that “being part of [Asbury Automotive] will provide tremendous career opportunities for our employees and continuation of exceptional service to our customers and community.”
David Hult, Asbury Automotive’s president and CEO, said the company was proud to have worked with the dealership group on the transaction. “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,” he noted.
Erin Kerrigan, founder and managing director of Kerrigan Advisors, congratulated Koons on his legacy of leadership. “Jim Koons has put his heart and soul into the car business for most of his life,” she commented. “It was a real honor to represent him and his organization in this once-in-a-lifetime transaction.”
While both public and private dealership groups put their growth plans on hold during the COVID pandemic, many have resumed their efforts to expand their businesses. This year has seen some of the largest retail automotive acquisitions to date, even as the car industry grapples with ongoing economic headwinds.
