Asbury Automotive Group has now fully acquired Jim Koons Automotive Companies, one of the largest privately-owned dealership groups in the U.S., for $1.2 billion.
The sale brings 20 dealerships representing 29 franchises under the Asbury Automotive umbrella, including one of the top-performing U.S. Toyota storefronts and six collision centers. The $1.2 billion price tag was comprised of $740 million in goodwill and $420 million in real estate, leasehold improvements, vehicle and parts inventory and fixed assets. According to its website, Asbury Automotive operates 139 new car storefronts across 14 states alongside seven used car dealerships. The company announced its plans to acquire Jim Koons Automotive this September.
Through its acquisition, Asbury Automotive expects to generate roughly $3 billion in additional yearly revenue. Now in its 50th year of operation, Jim Koons Automotive has frequently ranked in the top ten privately-owned dealership groups by sales and was one of 13 retailers to earn $3 billion in revenue in 2022. It is also regarded as one of the best retail automotive employers and recently paid $7 million in tenure bonuses to team members with more than ten years of service. The company was represented by buy-sell advisory Kerrigan Advisors.
In a statement, Jim Koons, chairman of the dealership group, expressed his pleasure over the acquisition and noted that “being part of [Asbury Automotive] will provide tremendous career opportunities for our employees and continuation of exceptional service to our customers and community.”
David Hult, Asbury Automotive’s president and CEO, said the company was proud to have worked with the dealership group on the transaction. “Not only are Koons’ twenty dealerships consistent leaders in sales volume and customer satisfaction, they are also renowned for their positive employee and workplace culture, essential values we share at Asbury,” he noted.
Erin Kerrigan, founder and managing director of Kerrigan Advisors, congratulated Koons on his legacy of leadership. “Jim Koons has put his heart and soul into the car business for most of his life,” she commented. “It was a real honor to represent him and his organization in this once-in-a-lifetime transaction.”
While both public and private dealership groups put their growth plans on hold during the COVID pandemic, many have resumed their efforts to expand their businesses. This year has seen some of the largest retail automotive acquisitions to date, even as the car industry grapples with ongoing economic headwinds.
Kerrigan Advisors is the leading sell-side advisor and thought partner to auto dealers nationwide. Since its founding in 2014, the firm has led the industry with the sale of over 275 dealerships representing nearly $9 billion in client proceeds, including the third largest transaction in auto retail history – the sale of Jim Koons Automotive Companies to Asbury Automotive Group. The firm advises the industry’s leading dealership groups, enhancing value through the lifecycle of growing, operating and, when the time is right, selling their businesses. Led by a team of veteran industry experts with backgrounds in investment banking, private equity, accounting, finance and real estate, Kerrigan Advisors does not take listings, rather they develop a customized sales approach for each client to achieve their personal and financial goals. In addition to the firm’s sell-side advisory services, Kerrigan Advisors also provides a suite of consulting and investor services including growth strategy, market valuation assessments, capital allocation, transactional due diligence, open point proposals, operational improvement and real estate due diligence.
Kerrigan Advisors monitors conditions in the buy/sell market and publishes an in-depth analysis each quarter in The Blue Sky Report®, which includes Kerrigan Advisors’ signature blue sky charts, multiples, and analysis for each franchise in the luxury and non-luxury segments. To download a preview of the report, click here. The firm also releases monthly The Kerrigan Index™ composed of the seven publicly traded auto retail companies with operations focused on the US market. The Kerrigan Auto Retail Index is designed to track dealership valuation trends, while also providing key insights into factors influencing auto retail. To access The Kerrigan Index™, click here. To read the 2023 Kerrigan Dealer Survey, click here. To read the 2024 Kerrigan OEM Survey, click here. Kerrigan Advisors also is the co-author of NADA’s Guide to Buying and Selling a Dealership.
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