Asbury Automotive Group has agreed to purchase Jim Koons Automotive Companies, marking the first dealership group merger of this size since 2021.
According to a press release, the transaction will integrate 20 storefronts representing 29 different car brands into the Asbury Automotive network, alongside six additional service centers. During its 50 years of business, the Jim Koons dealership group has operated locations across Virginia, Delaware and Maryland, including one of the busiest Toyota and Stellantis stores in the country. The company has frequently ranked among the top 20 dealerships due to its size and success and is the only vehicle retailer to receive accolades from both the Washington Post and Washington Business Journal for its work environment and culture. In 2022, the company was one of the few retailers to report an annual revenue of more than $3 billion.
With its purchase of the Jim Koons Automotive Companies, Asbury Automotive will add to its current network of 138 storefronts and 32 service centers. “This acquisition is transformative for our company…” noted David Hult, president and CEO of the dealership group. “Koons has an impressive history of achievement in sales, CSI and revenue across its 20 dealerships and is legendary for its emphasis on people—employees and community—and for giving back,” he continued. When the deal closes Q4 2023 or Q1 2024, the company expects its newly acquired storefronts to generate similar profits to current Asbury Automotive locations.
Buy-sell firm Kerrigan Advisors supported Jim Koons throughout the transaction. Since the start of the year, the company has tracked a growing number of major dealership groups re-entering the automotive mergers and acquisitions market after many put expansions on hold during the COVID pandemic. Erin Kerrigan, the firm’s founder and managing director, called the purchase a “milestone,” noting that it reflected “the strength of the U.S. auto retail market in 2023…”
