Asbury Automotive Group, Inc. entered into definitive agreement to acquire Jim Koons Management Co Inc. for approximately $1.2 billion.
September 06, 2023
Share
Asbury Automotive Group, Inc. (NYSE:ABG) entered into definitive agreement to acquire Jim Koons Management Co Inc. for approximately $1.2 billion on September 7, 2023. Asbury plans to fund the purchase price with its existing liquidity, credit facility and cash on hand. Jim Koons Automotive Companies reported over $3 billion in revenue in 2022.
The transaction is subject to customary closing conditions including receipt of approval of the transactions by certain automotive manufacturers, receipt of certain governmental clearances, including the expiration or termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, the continued accuracy of the representations and warranties of the parties, assignment of certain leases and key contracts and absence of a material adverse effect. The deal and is expected to close in the fourth quarter of 2023 or early in the first quarter of 2024. Erin Kerrigan of Kerrigan Advisors,Inc. acted as the exclusive sell-side advisor to Jim Koons Management Co Inc. Stephen Dietrich and Brooke Sizer of Holland & Knight LLP acted as the legal advisor to Jim Koons Management Co Inc. Baker Tilly US, LLP acted as the accountant to Jim Koons Management Co Inc. Dave Grubman and Ryan Drzemiecki of Jones Day and Hill Ward & Henderson acted as the financial advisors to Asbury Automotive Group, Inc. and Forvis, LLP acted as the accountant to Asbury Automotive Group, Inc.
Asbury Automotive Group, Inc. is an automotive retailer company. The Company operates through two segments: Dealerships and Total Care Auto (TCA). The Company offers a range of automotive products and services, including new and used vehicles; parts and service, which includes vehicle repair and maintenance services, replacement parts and collision repair services, and finance and insurance (F&I) products, which includes arranging vehicle financing through third parties and aftermarket products, such as extended service contracts, guaranteed asset protection (GAP) debt cancellation and prepaid maintenance. The Company operates approximately 160 new vehicle dealerships, consisting of 208 franchises, representing 31 domestic and foreign brands of vehicles. Its TCA, powered by Landcar, is a provider of service contracts and other vehicle protection products, and 37 collision repair centers.