Asbury Automotive continues its tradition of big deals announcing its fourth large transaction since 2020. Its pending acquisition of the Herb Chambers Group in Massachusetts, announced last week, for $1.34 billion price, will be the industry’s third-largest dealership buy-sell in history and make Asbury the buyer in the second, third, and fourth most expensive transactions.
The deal, scheduled to close in the second quarter, includes $750 million for goodwill and just under $590 million for real estate. The cost of Chambers’ new and used inventory, loaner vehicles, fixed assets, and parts will be calculated at closing and likely will push the overall price to more than $1.4 billion.
The Chambers group is one of the industry’s 25 largest dealer groups based on its total revenue of more than $3 billion, according to 2023 data from the Automotive News Top 150 Dealership Group list. (At least three larger groups, Berkshire Hathaway Automotive, AMSI, and MileOne Autogroup, do not report their data to Automotive News, but whose revenue each exceeds $3 billion).
Chambers started the group in 1985 after purchasing the Cadillac Oldsmobile dealership in New London, CT. Frustrated with an initial interaction with one of the employees, Chambers waited for the owner to return from lunch and offered to buy the store. Over the years, he has become a Boston institution, growing the group into one of the country’s ten largest privately-held dealer groups. In December 2024, Chambers donated $100 million to Massachusetts General Hospital to help build a new tower that will house 228 inpatient beds and lead the hospital’s cancer research when it opens in 2027.
With the acquisition of Chambers, Asbury will add 33 dealerships with 52 franchises and three collision centers that generated $2.9 billion last year. Herb Chambers, 83, will maintain ownership of the Mercedes Benz Boston store in Somerville, MA.
Asbury, led by CEO David Hult, is currently the industry’s fifth-largest dealer group, with 152 dealerships that generated $17.2 billion in 2024, up from $14.8 billion in 2023. Although the dealer group acquired no stores in 2024, it closed on the $1.2 billion purchase of the Virginia-based Jim Koons Dealerships in December 2023, adding more than $3 billion in revenue.
The acquisition continues Asbury’s aggressive growth strategy, which started in 2019 when the group’s 88 stores generated $7.2 billion in revenue. By the end of 2025, Asbury will have approximately 185 dealerships with nearly $20 billion in revenue.
Industry’s Largest Transactions
Berkshire Hathaway Acquires the Van Tuyl Group — March 2015
- Seller’s annual revenue: $9 billion
- Transaction price: $4.1 billion
- Note: This is the biggest transaction by purchase price and store count in history.
Asbury Acquires Larry H. Miller Dealerships – December 2021
- Seller’s annual revenue: $5.7 billion
- Transaction price: $3.2 billion
- Note: Transaction included 54 new vehicle dealerships, seven used vehicle dealerships, 11 collision centers, and Total Car Care, a service contract and vehicle protection solution provider.
Asbury Automotive Acquires the Herb Chambers Companies (deal to be completed in the second quarter 2025)
- Seller’s annual revenue: $3 billion (approximate)
- Transaction price: $1.3 billion ($750 million for goodwill; $590 million for real estate; inventory and fixed assets will be calculated at closing)
- Note: The deal lands Asbury one of the industry’s most attractive groups. Once the deal is closed, look for Asbury to sell a small number of stores across its portfolio to stay within manufacturer requirements).
Asbury Automotive Acquires the Jim Koons Dealerships — December 2023
- Seller’s annual revenue: Approximately $3 billion
- Transaction price: $1.2 billion ($740 million for goodwill, approximately $420 million for the real estate and leasehold improvements, and approximately $70 million for inventory, fixed assets, and supplies)
- Note: Deal included 20 stores, six collision centers
Sonic Automotive Acquires RFJ Partners — December 2021
- Seller’s annual revenue: $2.8 billion
- Transaction price: $950.2 million
- Note: Transaction included RFJ Auto’s new and used vehicle inventory and parts and accessories inventory. The blue sky and real estate valuation totaled approximately $700 million. Rick Ford partnered with private equity firm Jordan Co. in early 2014 to form RFJ Auto Partners, one of the industry’s first mega private equity and dealership partnerships.
Group 1 Automotive Acquires Prime Automotive Group — November 2021
- Seller’s annual revenue: $1.8 billion
- Transaction price: $934.2 million
- Note: Group 1 Automotive acquired 28 of the 30 stores owned by troubled GPB Capital Holdings after numerous fraud allegations emerged against the investment firm.
Asbury Automotive Group Acquires Park Place — July 2020
- Seller’s annual revenue: $1.7 billion
- Transaction price: $889.9 million
- Note: The franchises acquired included 12 new vehicle franchises (eight dealerships) in the Dallas/Fort Worth market: three Mercedes-Benz stores, three Sprinter franchises, two Lexus stores, one Jaguar Land Rover store, one Porsche store, and one Volvo store. The transaction also included the Park Place auction and two collision centers.
Lithia Motors Acquires Suburban Automotive Group — April 2021
- Seller’s annual revenue: $2.4 billion
- Transaction price: Estimated $700 million
- Note: We’re estimating the price on this one. We’ve heard it may have been higher — $800 million plus. Lithia paid $1,358,900,000 for acquisitions in the second quarter of 2001 — Suburban’s 34 rooftops (56 franchises); Planet Honda, Las Vegas Hyundai Superstore in Las Vegas; BMW and Acura in Sherman Oaks, CA; Southwest Kia Group in Arizona; Herrin-Gear in Mississippi; and Michael’s Toyota and Subaru in Washington.
