MileOne Autogroup purchased a Delaware Lexus dealership from Asbury Automotive just months after the seller acquired the storefront from the Jim Koons group.
The transaction for Koons Wilmington Lexus was finalized on March 4 and included the dealership’s land. Its transfer marks the first time MileOne Autogroup has owned a storefront in Wilmington. As of March 5, 2024, the company’s website says it runs 65 locations, primarily in the Baltimore, Maryland area, alongside eight body shops.
Asbury Automotive took ownership of the location last December as part of its $1.2 billion acquisition of Jim Koons Automotive, which at the time operated 20 dealerships. MileOne’s transaction marks just under three months since the Lexus storefront first traded hands. It is not clear when the site was initially put up for sale.
“We are thrilled to welcome another Lexus store to the MileOne network,” commented MileOne Autogroup Vice President Michael Fader, in a statement. “When this location became available, we knew immediately that it would be a terrific addition to our portfolio.”
The MileOne-Asbury deal underscores the steady pace dealership consolidation has maintained over the last four years, unabated by economic uncertainty created from the COVID-19 pandemic. Even now, major merger-and-acquisition (M&A) announcements within the retail automotive sector continue to arrive on a near-weekly basis, with high-profile franchises such as Lithia Motors and Group 1 making some of the most aggressive moves. Premium and luxury franchises, including Lexus, have been particularly popular among buyers, with competition for stores in attractive markets becoming increasingly fierce. Analysts expect M&A activity to remain high throughout 2024 as dealers expect financial headwinds, including inflation and interest rate hikes, to resolve within the near future.
