Asbury To Acquire Larry H. Miller Dealerships, And Total Care Auto

(RTTNews) - Asbury Automotive Group, Inc. (ABG) has entered into a definitive agreement with LHM Group to acquire Larry H. Miller dealerships, and Total Care Auto, Powered by Landcar. The purchase price of $3.2 billion includes approximately $740 million of real estate.

The company expects the acquisition will add approximately $5.7 billion in expected annualized revenues, which positions it well to execute five-year plan to generate $20 billion in annual revenue by 2025.

Asbury Automotive Group said the acquisition of these entities, and equity financing of $600 million, is expected to be approximately 14% accretive to 2022 earnings per share with 2024 EPS accretion anticipated to be approximately 20%.

Asbury noted that it has several other strategic acquisitions under contract, that are expected to add approximately $900 million in additional annualized revenues. These additional acquisitions are expected to drive total 2022 EPS accretion to approximately 20% and 2024 EPS accretion to approximately 28%.

Shares of Asbury Automotive Group were up 3% in pre-market trade on Wednesday.