Asbury Automotive Group Inc (NYSE:ABG) shares are buying and selling decrease on Tuesday. The corporate inked a deal to accumulate The Herb Chambers Firms in a $1.34 billion deal.
The transaction covers Herb Chambers’ 33 dealerships, 52 franchises, and three collision facilities, representing $2.9 billion in 2024 income.
The transaction, anticipated to shut within the late second quarter of 2025, is topic to customary circumstances and shall be funded by means of credit score amenities, mortgage proceeds, and money.
Herb Chambers, principal of the Herb Chambers Firms, has agreed to imagine the put up of Particular Advisor to Asbury and can retain possession of Mercedes-Benz of Boston in Somerville, Massachusetts.
David Hult, Asbury’s President & CEO, stated, “HCC is a revered model with a wealthy historical past and status for having a buyer and workforce member-focused tradition, aligning straight with Asbury’s North Star to develop into probably the most guest-centric automotive retailer.”
Final month, Asbury Automotive reported fourth-quarter income of $4.5 billion, beating estimates , and adjusted EPS of $7.26, which exceeded expectations, with a robust Components & Service phase performance offsetting margin pressures.
As of December 31, 2024, the corporate had money and floorplan offset accounts of $156 million and availability underneath the used car floorplan line and revolver of $672 million.
Traders can achieve publicity to the inventory through Invesco S&P SmallCap Shopper Discretionary ETF (NASDAQ:PSCD) and VanEck ETF Belief VanEck Morningstar SMID Moat ETF (BATS:SMOT).
Worth Motion: ABG shares are down 1.37% at $299.20 on the final verify Tuesday.
Learn Subsequent:
Photograph courtesy: Shutterstock.
UNLOCKED: 5 NEW TRADES EVERY WEEK. Click now to get top trade ideas daily, plus limitless entry to cutting-edge instruments and methods to realize an edge within the markets.
Get the most recent inventory evaluation from Benzinga?
This text Asbury Automotive Accelerates Expansion With $1.34 Billion Herb Chambers Takeover initially appeared on Benzinga.com
© 2025 Benzinga.com. Benzinga doesn’t present funding recommendation. All rights reserved.
