Asbury Automotive Group has officially entered into an agreement to acquire The Herb Chambers Companies for a substantial total of $1.3 billion. This acquisition reflects Asbury’s strategic move to enhance its presence in key markets, especially in Massachusetts and Rhode Island, where the Herb Chambers Companies operates. The transaction will significantly increase Asbury’s portfolio and expand its operational capabilities, as the Herb Chambers Companies is one of the largest automotive groups in New England, employing approximately 2,200 individuals.
Asbury Automotive Group, headquartered in Duluth, Georgia, has been looking to broaden its business scope and this acquisition represents one of the largest in the automotive retail space in recent years. In a written statement, Asbury’s CEO, David Hult, expressed optimism about the acquisition, stating, “The Herb Chambers Companies is a well-respected name in the automotive industry and brings a wealth of experience and customer loyalty that will be invaluable as we continue to grow our market presence.”
The completion of the deal is contingent upon customary closing conditions, but both companies are optimistic about a seamless transition. The Herb Chambers Companies boasts a diverse portfolio consisting of over 30 dealerships across various brands, including luxury automakers, which will nicely complement Asbury’s existing offerings.
In addition to expanding Asbury’s geographic footprint, this transaction is expected to generate significant synergies and operational efficiencies. Industry analysts suggest that this move could lead to increased competition in the automotive retail market, challenging other groups in the sector to either enhance their service offerings or consider similar consolidation strategies. The acquisition aligns with a broader trend in the automotive retail industry, characterized by an increasing number of consolidations as groups seek to capture larger market shares and improve efficiency in operations.
