DALLAS — The founder and chairman of Park Place Dealerships will sell 14 dealerships to Asbury Automotive Group Inc. (NYSE: ABG) in a $1 billion all-cash transaction, excluding vehicle inventory, according to a news release.
"This acquisition will transform our total portfolio to 50% luxury stores and add approximately $2 billion in expected annualized revenues," Asbury President and Chief Executive Officer David Hult said in a prepared statement.
The sale to the Duluth-based company is expected to be finalized by March 2020 and is subject to customary closing conditions.
Park Place Founder and Chairman Ken Schnitzer will maintain ownership of two dealerships – the Mercedes-Benz and Porsche dealerships in Grapevine – as well as the body shop in Grapevine.
“The decision to sell the company that I have spent the past three decades building has not been an easy one,” Schnitzer said in a statement. “But now is the time to enjoy my family and friends, as well as explore new opportunities.”
The transaction price includes $785 million of goodwill, about $215 million for real estate and leasehold improvements, and about $30 million for parts and fixed assets.
Schnitzer founded Park Place Dealerships in 1987 with one Mercedes-Benz dealership on Oak Lawn Avenue. Now, Park Place has more than 2,100 employees and represents luxury brands such as Lexus, Mercedes-Benz, Porsche, Volvo, Jaguar, Land Rover and more.
Park Place Lexus Plano and Park Place Lexus Grapevine were awarded the Malcolm Baldrige National Quality Award by the President of the United States in the small business category in 2005, becoming the first auto dealer to win the award.
