Have I got a deal for you.
Sandy-based Larry H. Miller Dealerships and its sister company Total Care Auto are being purchased by Asbury Auto Group, a Fortune 500 company headquartered in Duluth, Georgia. The aggregate purchase price of $3.2 billion includes roughly $740 million in real estate.
The acquisition is expected to close in the fourth quarter.
“Since our family’s purchase of a single Utah dealership in 1979, we have been honored to cultivate a strong, values-based culture and customer-first business model within the automotive industry for more than four decades,” Larry H. Miller Group of Companies owner Gail Miller said. “We feel a great sense of stewardship to our incredible associates and their families, to our loyal customers and partners, and to the communities where we operate.
“As always, we believe that being in business is a means to doing good, and this transaction will elevate our ability to continue to enrich lives through our philanthropic efforts as well as reinvest in new ventures,” Miller added.
The purchase will add annualized revenues of roughly $5.7 billion to the Asbury balance sheet, industry sources said. The Miller dealership group, the eighth-largest dealer company in the U.S., includes 54 franchised dealerships, seven used-car stores and 11 collision centers in Arizona, Utah, New Mexico, Idaho, California, Colorado and Washington. Ashbury also owns dealerships in Colorado.
“Larry H. Miller Dealerships is one of the most respected automotive dealer groups in the United States with a strong culture and stewardship mentality,” Asbury President and CEO David Hult said in a news release. “This acquisition is a unique opportunity to rapidly expand Asbury’s presence into these desirable, high-growth Western markets with strong accretion from Day One, with this impressive group and its rich history.”
“Larry H. Miller Dealerships is a well-run operation with long-tenured employees and a senior leadership team equaling over 5,300 passionate team members, all of whom have had a part in building and carrying forward the legacy that Larry H. and Gail Miller founded over 42 years ago,” Hult added. “We are thrilled to grow our presence in these states that we believe have appealing economic and demographic growth opportunities while broadening our geographic reach.”
The deal also includes Total Care Auto, Powered by Landcar, a service contract and vehicle protection product provider.
“Total Care Auto is comprehensively integrated with Larry H. Miller Dealerships and presents a compelling opportunity for Asbury to enter this profitable finance and insurance business,” Hult said. “Like the dealerships, this service contract company is extremely well-run.”
“We are proud that Larry H. Miller Dealerships has grown to be one of the largest automotive retailers in the country,” said Larry H. Miller Group of Companies CEO Steve Starks. “Our incredible employees will have the opportunity to be part of Asbury, another well-respected and trusted brand, that brings a national footprint with a best-in-class technology platform. This transaction provides additional opportunities for the LHM Group to further diversify and grow our portfolio of businesses and investments.”
“We look forward to becoming part of one of the nation’s leading and largest automotive and retail companies,” said Dean Fitzpatrick, president of Larry H. Miller Dealerships. “Asbury is like-minded in terms of our values and stewardship. Their vision to be the most guest-centric company in the industry aligns with our guiding principle to be the best place in town to work and the best place in town to do business.”
Asbury Automotive Group is one of the largest automotive retailers in the U.S. In late 2020, Asbury embarked on a five-year plan to increase revenue and profitability through organic and acquisition growth as well as its Clicklane digital car purchasing platform. Asbury currently operates 91 dealerships, consisting of 112 franchises, representing 31 domestic and foreign brands of vehicles. Asbury also operates 25 collision repair centers. The company has about 8,200 employees.
