After delaying the deal earlier this year, Asbury Automotive Group has completed its acquisition of Park Place Dealerships. The auto retailer announced that the move adds approximately $1.7 billion in annual revenue. The company announced the completion of the deal in a press release Monday evening.
“Park Place remains one of the best operators of luxury stores in the industry. Their portfolio of stores comes with a strong base of loyal clients and long-term team members throughout the high growth Dallas/Fort Worth market” said David Hult, Asbury’s President and Chief Executive Officer. “We are thankful to both the Asbury and Park Place employees who have worked tirelessly over the last few weeks to complete this transaction. The talent in both organizations and the resilience of the dealer model have put us in a position to become a stronger and more diversified company. I am pleased to welcome all our new teammates at Park Place.”
Park Place brings several award-winning luxury dealerships to Asbury in highly coveted locations. The Mercedes-Benz, Lexus, Porsche, and Jaguar/Land Rover stores rank among the top 10 stores in the country amongst their franchises.
The move expands the footprint of the Duluth, Georgia-based retailer with 28 percent of revenue now coming from the Texas market. It also gives Asbury a higher presence in luxury brands from 36 percent to around 49 percent of revenue derived from luxury vehicles.
In the acquisition, Asbury will obtain operating assets which include 12 new vehicle franchises. All franchises reside within the Dallas/Fort Worth market with three Mercedes-Benz, three Sprinter, two Lexus, one Jaguar, one Land Rover, one Porsche, and one Volvo. The retailer also acquired the Park Place auction and two collision centers.
Park Place Dealerships’ founder Ken Schnitzer and CEO Neil Grossman have formed a new automotive group, Avondale Group, which is made up of the dealerships that were not part of the Asbury deal.
“We are proud of the organization we built and the culture we created at Park Place,” Avondale CEO Neil Grossman said in a statement to The Dallas Morning News. “Avondale is a new opportunity to build a brand with an experienced team in the best facilities. We will focus on serving clients, supporting the communities where we live and work, and fostering our team to learn and grow.”