Asbury Automotive Group Inc (NYSE:ABG) shares are trading lower on Tuesday. The company inked a deal to acquire The Herb Chambers Companies in a $1.34 billion deal.
The transaction covers Herb Chambers’ 33 dealerships, 52 franchises, and three collision centers, representing $2.9 billion in 2024 revenue.
The transaction, expected to close in the late second quarter of 2025, is subject to customary conditions and will be funded through credit facilities, mortgage proceeds, and cash.
Herb Chambers, principal of the Herb Chambers Companies, has agreed to assume the post of Special Advisor to Asbury and will retain ownership of Mercedes-Benz of Boston in Somerville, Massachusetts.
David Hult, Asbury’s President & CEO, said, “HCC is a respected brand with a rich history and reputation for having a customer and team member-focused culture, aligning directly with Asbury’s North Star to become the most guest-centric automotive retailer.”
Last month, Asbury Automotive reported fourth-quarter revenue of $4.5 billion, beating estimates , and adjusted EPS of $7.26, which exceeded expectations, with a strong Parts & Service segment performance offsetting margin pressures.
As of December 31, 2024, the company had cash and floorplan offset accounts of $156 million and availability under the used vehicle floorplan line and revolver of $672 million.
Investors can gain exposure to the stock via Invesco S&P SmallCap Consumer Discretionary ETF (NASDAQ:PSCD) and VanEck ETF Trust VanEck Morningstar SMID Moat ETF (BATS:SMOT).
Price Action: ABG shares are down 1.37% at $299.20 at the last check Tuesday.
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This article Asbury Automotive Accelerates Expansion With $1.34 Billion Herb Chambers Takeover originally appeared on Benzinga.com
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