Analyst Note| David Whiston, CFA, CPA, CFE |
Asbury Automotive Group announced one of the largest ever auto dealer acquisitions on Sept. 29. In the fourth quarter, it plans to purchase the Larry H. Miller Group and LHM-affiliated finance and insurance entity Total Care Auto. LHM is America’s eighth-largest dealer group per Automotive News. We are leaving our fair value estimate unchanged as we see the deal as value neutral. The deal adds trailing 12-month revenue at June 30 of $5.7 billion, 54 new-vehicle stores, 11 collision centers, and 7 used-vehicle stores. Asbury currently has 91 locations and $8.9 billion of revenue over the same period.