In an SEC filing made yesterday on March 25th, Atlanta-based Asbury Automotive Group terminated its $1 billion purchase agreement of 14 luxury Park Place Dealerships which represent brands like Mercedes-Benz, Porsche, and Maserati to name a few. The sale, which was originally planned to be finalized at the end of March, was reportedly called off due to economic concerns around the COVID-19 outbreak.
“We will continue to do what we have done best for the past 33 years,” said Ken Schnitzer, founder and Chairman of Park Place Dealerships, “Now more than ever, we remain committed to creating exceptional experiences for our clients, relying on the talent within our organization, and, most importantly, keeping everyone safe”.
During initial negotiations, Asbury CEO David Hult said the acquisition represented about $2 billion in expected annual revenues. Three stores in the Park Place group are among the Top 10 U.S. dealerships for their respective brands, namely Mercedes-Benz, Porsche, and Bentley.
Forbes also reports that Asbury upped its borrowing, also in reaction to the pandemic. Asbury is one of the largest automotive retailers in the U.S. market. Its 2018 revenues were around $6.9 billion. The group has 88 dealerships.
Stayed tuned for more updates on this developing story.