The M&A activity continues at a feverish pace in the automotive sector, and Asbury Automotive Group is making yet another acquisition. They’ve completed the purchase of Stevinson Automotive, a group of eight dealerships in the Denver, Colorado area. The acquisition adds another $715 million in expected annual revenue for Asbury.
Stevinson is a family-owned and operated dealer group with six franchises, Toyota, Lexus, Porsche, Chevrolet, Hyundai, and Jaguar. They currently have two Toyota and Lexus storefronts each in the Denver area, and all the dealerships are included in the sale. Also included is an open point for a Land Rover dealership.
The Toyota stores are by far the most profitable for the group, accounting for 48% of their revenue.
Asbury President and CEO David Hult said in the press release, “We are thrilled to add to our growing footprint in the dynamic and growing Denver area, especially through a well-respected and successful dealership group like Stevinson. Many of Stevinson’s award-winning dealerships are ranked as some of the best in the country, but what makes this group special are its people and the culture they have built over its 60-year history. Stevinson’s 600 plus team members are talented professionals who are dedicated to the guest experience and aligned with our North Star of being the most guest-centric automotive retail company.”
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Fast-growing auto group
The transaction adds to Asbury Automotive Group’s ever-growing number of dealerships. Including these eight stores, Asbury will operate 109 locations. The revenue from these stores will another 10% to their 2020 annual revenue of $7.1 billion, but it will be well more than $7.8 billion. Asbury also has the Larry H. Miller Dealerships transaction to close as well as Total Care Auto’s F&I products and services.
The Larry H. Miller deal adds 54 new car dealerships and seven pre-owned stores that account for more than 115,000 sales annually. The deal also includes the group’s 11 collision centers that strategically service their stores’ surrounding areas. Total Care Auto, powered by Landcar, is the in-house F&I provider for the Larry H. Miller group and will go with the deal, giving Asbury the capacity to sell their own F&I products. While the transaction is for $3.2 billion, it should generate an additional $5.7 billion in revenue for Asbury Automotive Group.
Asbury has been focused on building the group’s revenue through acquisitions, but each has been intentional. The group is guided by their “North Star” of becoming “the most guest-centric automotive retailer” in the nation. Their recent transactions have reflected that goal, both in the Larry H. Miller deal and the new Stevinson Automotive purchase.
The management team at Stevinson acknowledges the culture and vision Asbury has. Current second-generation owner of Stevinson, Kent Stevinson, said, “After meeting with David Hult and the Asbury team and getting to know them, I knew that their business approach, their philosophy toward employees and customers mirrored our own here at Stevinson. I look forward to David and his exceptional team continuing the Stevinson legacy for another 60 years!”
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