Asbury Automotive Closes $5.7 Billion Expansion Through Strategic Larry H. Miller Dealership Acquisition

Asbury Automotive Group has successfully closed its major acquisition of Larry H. Miller Dealerships and Total Care Auto, marking a transformative move that positions the company as the eighth-largest franchised dealership operator in the United States. This deal fundamentally reshapes Asbury’s national footprint by adding over 60 retail locations across six Western states including Arizona, Utah, New Mexico, Idaho, California, and Washington.

Scale and Scope of the Transaction

The acquisition brings substantial scale to Asbury’s operations, incorporating 54 new vehicle dealerships, 7 used vehicle dealerships, 11 collision repair centers, a used vehicle wholesale operation, and a vertically integrated F&I (finance and insurance) product provider. The combined entity now operates 18 franchise brands spanning both domestic and international manufacturers. The deal injects approximately $5.7 billion in annualized revenue into Asbury’s portfolio, with projections showing $473 million in adjusted EBITDA when including anticipated cost synergies and operational efficiencies.

In the twelve months leading to September 30, 2021, the Larry H. Miller dealership network moved approximately 120,000 new and used vehicles, demonstrating the operational strength and market penetration of the acquired business. This volume represents established customer relationships and proven execution capabilities in desirable Western markets that historically command strong margins.

Strategic Value and Market Positioning

From a strategic perspective, this acquisition addresses critical gaps in Asbury’s geographic distribution. Prior to this deal, Asbury’s presence in the Western United States was limited. The transaction dramatically expands the company’s coast-to-coast operational capability and unlocks significant synergy opportunities through Asbury’s proprietary Clicklane digital retailing platform, which can now be deployed across a substantially broader dealership network.

The addition of Total Care Auto, a leading provider of vehicle service contracts and protection products, delivers an unexpected competitive advantage. Already comprehensively integrated with Larry H. Miller Dealerships and operating as a captive F&I provider, this business can be scaled across Asbury’s entire national store network. The opportunity to distribute premium financial products to a much larger customer base represents meaningful incremental profit potential beyond traditional dealership operations.

Broader Context and Market Achievement

When combined with other acquisitions closed in 2021, Asbury has now deployed $6.6 billion in annualized revenue through strategic M&A activity. This accomplishment surpasses the company’s five-year strategic plan target of $5 billion in acquired revenue during year one, demonstrating aggressive yet disciplined capital deployment. The Larry H. Miller family, which built one of America’s largest privately held automotive companies over four decades starting from a single dealership in 1979, has positioned itself for continued growth through diversification into healthcare, real estate, entertainment, and other sectors.

The Larry H. Miller organization’s stewardship philosophy and brand reputation in high-growth Western markets represented a compelling acquisition target. Unlike many dealership networks, this portfolio has been characterized by strong operational execution, employee retention, and community relationships—intangible assets that directly contribute to sustainable profitability and customer loyalty.

Financial Impact and Forward Momentum

Asbury maintains a strong balance sheet position following the transaction close and has secured committed financing from multiple banking institutions to support the acquisition. Management expects to provide updated guidance on its strategic plan and integration progress during first quarter 2022 earnings reporting. The company’s ability to realize anticipated cost savings of approximately $65 million while maintaining the acquired operation’s profitability represents the core value creation thesis underlying the transaction.

This acquisition demonstrates how consolidation within the fragmented U.S. automotive retail sector can create meaningful shareholder value through geographic diversification, operational scale, and platform capabilities that individual dealership groups cannot replicate independently.