Park Place Dealerships, has entered into a definitive agreement to sell certain assets of Park Place Dealerships, one of the country’s largest privately-owned luxury dealer groups, to Asbury Automotive Group.
Duluth, Georgia-based Asbury Automotive Group Inc. (NYSE: ABG), one of the largest automotive retail and service companies in the U.S., said in a news release it has entered into a definitive agreement to acquire certain assets of Park Place Dealerships for $685 million of goodwill and approximately $50 million for parts, fixed assets, and leaseholds, excluding vehicle inventory.
Asbury Automotive Group will purchase eight dealerships housing 10 new vehicle franchises, located in the Dallas/Fort Worth market. The acquisition includes Mercedes-Benz and Sprinter stores in Dallas, Fort Worth and Arlington, Lexus Plano and Lexus Grapevine, Jaguar Land Rover DFW, Porsche Dallas and Volvo Dallas. Park Place BodyWerks in Dallas and Fort Worth, Park Place Auto Auction and the Park Place brand are also included in the sale.
Schnitzer will retain ownership of Mercedes-Benz Grapevine, Sprinter and Porsche Grapevine, Bentley Dallas, Rolls-Royce Motor Cars Dallas, McLaren Dallas, Maserati Dallas, Koenigsegg, Aston Martin Dallas, in addition to the body shop in Grapevine and the Select subscription service.
The sale is expected to be finalized by August 31. Schnitzer agreed to sell the company last December and Asbury terminated the agreement in March as COVID-19 shut down automotive operations across the world.
“In the last four months, our team has worked hard to overcome numerous challenges,” said Ken Schnitzer, founder and Chairman of Park Place. “We were able to adapt and serve our clients at the highest level, even in the most difficult circumstances. As the market continues to rebound, Asbury Automotive re-engaged with an offer to purchase Park Place. As I said last December when we first announced the sale of Park Place, it is time for me to take a step back and enjoy my family and friends.”
Park Place Dealerships has been named to The Dallas Morning News’ Top 100 Places to Work for the last 10 years. Each of the individual dealerships are ranked among the best in the country with respect to sales, service, and customer satisfaction.
Park Place Dealerships was founded by Ken Schnitzer in 1987. For the past 33 years, the company has been engaged in the community supporting the arts, medical research, children’s advocacy and education. Park Place employs more than 1,700 members and operates 18 full-service dealerships representing luxury brands Lexus, Mercedes-Benz, Sprinter, Porsche, Volvo, Jaguar, Land Rover, Koenigsegg, Rolls-Royce, Bentley, McLaren, Maserati and Aston Martin. For more info, visit parkplace.com.
The transaction is expected to increase Asbury’s geographic mix to 28% of revenue derived from the Texas market, and further diversify the company’s overall portfolio from 36% to approximately 49% of revenue derived from luxury brands.
Park Place has a highly attractive mix of large dealerships with revenue comprised of 38% Mercedes-Benz, 37% Lexus, 12% Jaguar/Land Rover, 9% Porsche, and 5% Volvo, according to an Asbury news release.