Kerrigan Advisors Represents Asbury Automotive Group in Sale of Atlanta-based Nalley Chevrolet

Rhea-AI Summary

Kerrigan Advisors has represented Asbury Automotive Group (NYSE: ABG) in the sale of Nalley Chevrolet in Union City, Atlanta, to ALM Automotive Group. This marks Kerrigan Advisors' 276th dealership sold since inception and 70th franchise sold year-to-date. Asbury, one of the largest US auto retailers with $14.8 billion in revenue in 2023, continues to optimize its portfolio. The sale highlights strong buyer demand in the Southern region, particularly for Chevrolet, the top domestic brand. Atlanta's robust economy, growing 32% in five years, and Chevrolet's 13% sales growth in 2023 underscore the deal's attractiveness. Kerrigan Advisors' expertise in the buy/sell market and the Southern region played a important role in facilitating this transaction.

Positive

• Asbury Automotive Group reported $14.8 billion in revenue for 2023
• Kerrigan Advisors has sold 276 dealerships since inception and 70 franchises year-to-date
• Atlanta's economy has grown 32% in five years
• Chevrolet grew sales by 13% in 2023, outpacing Ford (+7.5%) and CDJR (-1.2%)

Negative

• None.

Insights

Financial Analyst

The sale of Nalley Chevrolet by Asbury Automotive Group (NYSE: ABG) to ALM Automotive Group is a strategic move in a high-growth market. While specific financial details aren't disclosed, this transaction aligns with Asbury's portfolio optimization strategy. With $14.8 billion in 2023 revenue, Asbury's divestiture of a single dealership likely won't significantly impact its financials. However, it demonstrates the company's focus on operational efficiency and market positioning. The robust buyer demand in the South and Chevrolet's strong performance (13% sales growth in 2023) suggest a favorable deal for both parties. For investors, this move indicates Asbury's proactive management and ability to capitalize on market dynamics, potentially enhancing long-term shareholder value.

Market Research Analyst

This transaction highlights key market trends in the automotive retail sector:

• Continued consolidation in the industry
• Strong buyer demand in high-growth Southern markets
• Shift towards optimizing dealership portfolios

Atlanta's 32% economic growth in five years and its ranking as Money Magazine's #1 "Best Place to Live" underscore the market's attractiveness. Chevrolet's strong brand performance, ranking 4th in J.D. Power's vehicle quality assessment, further enhances the dealership's value. This sale reflects a broader industry trend of dealership groups fine-tuning their portfolios to align with changing market dynamics and consumer preferences, particularly the sustained demand for trucks and SUVs.

Sale of leading domestic brand in high-growth market highlights ongoing buyer demand in the Southern region; transaction represents the 276^th dealership sold by Kerrigan Advisors since inception and 70^th franchise sold year-to-date

ATLANTA--(BUSINESS WIRE)-- Kerrigan Advisors, the premier sell-side advisor and thought partner to auto dealers nationwide, represented Atlanta-based Asbury Automotive Group (NYSE: ABG) in the sale of Nalley Chevrolet in Union City, a suburb of Atlanta, Georgia, to ALM Automotive Group. This transaction represents Kerrigan Advisors' 276^th dealership sold since inception and 70^th franchise sold year-to-date.

Asbury Automotive Group is one of the largest automotive retailers in the United States, with $14.8 billion in revenue reported in 2023 derived from 155 dealerships and 37 collision centers, located in 15 states. The Nalley Chevrolet dealership is located in a high-volume auto mall represented by 18 brands in Union City, a southern suburb of Atlanta experiencing strong population growth. The buyer, ALM, was established in 2006 with a focus on providing high quality pre-owned vehicles in Atlanta and has since expanded to fourteen locations around Georgia and South Carolina with seven franchise locations, representing (2) Kia, (2) Hyundai, Nissan, Ford and Stellantis.

“As we continued to look for opportunities to make changes to our portfolio, we knew we wanted to partner again with Kerrigan Advisors on this sale, especially given their deep experience and expertise, both in the buy/sell market and in the Southern region,” said David Hult, CEO, Asbury Automotive Group. “Thank you to all our Nalley Chevrolet employees and customers over the years. We know that Nalley Chevrolet is in good hands with the team at ALM.”

“We were pleased to work again with the very impressive Asbury team in this sale," said Erin Kerrigan, Founder and Managing Director of Kerrigan Advisors. "We continue to see robust buyer demand in the South, especially in high growth markets and, with Chevrolet as the top domestic brand, there was high demand for this dealership. Having represented more than 80 franchises sold in the region since 2020, Kerrigan Advisors was well positioned to lead this transaction on behalf of Asbury and are pleased the transaction had such a successful outcome.”

Atlanta is a top growth market in the US and ranks as the #1 “Best Place to Live” by Money Magazine. Atlanta’s economy has grown 32% in just five years, bolstered by the 17 Fortune 500 companies headquartered there, the 3rd largest concentration in the US. Chevrolet ranked #4 for vehicle quality by J.D. Power in 2023, growing sales by 13% in 2023, outpacing other domestic brands including Ford (+7.5%) and CDJR (-1.2%). The brand’s strength is fueled by a high-quality product lineup of trucks and SUVs, which continue to yield strong gross margins.

“We were honored to have been chosen to work on this divestiture with Asbury and appreciate the trust they placed in us,” said Ryan Kerrigan, Managing Director of Kerrigan Advisors. “This transaction underscores the ongoing strength of the buy/sell market for robust franchises in economically thriving areas like Atlanta.”

About Kerrigan Advisors

Kerrigan Advisors is the leading sell-side advisor and thought partner to auto dealers nationwide. Since its founding in 2014, the firm has led the industry with the sale of over 275 dealerships representing nearly $9 billion in client proceeds, including the third largest transaction in auto retail history – the sale of Jim Koons Automotive Companies to Asbury Automotive Group. The firm advises the industry’s leading dealership groups, enhancing value through the lifecycle of growing, operating and, when the time is right, selling their businesses. Led by a team of veteran industry experts with backgrounds in investment banking, private equity, accounting, finance and real estate, Kerrigan Advisors does not take listings; rather they develop a customized sales approach for each client to achieve their personal and financial goals. In addition to the firm’s sell-side advisory services, Kerrigan Advisors also provides a suite of consulting and investor services including growth strategy, market valuation assessments, capital allocation, transactional due diligence, open point proposals, operational improvement and real estate due diligence.

Kerrigan Advisors monitors conditions in the buy/sell market and publishes an in-depth analysis each quarter in The Blue Sky Report®, which includes Kerrigan Advisors’ signature blue sky charts, multiples, and analysis for each franchise in the luxury and non-luxury segments. To download a preview of the report, click here. The firm also releases monthly The Kerrigan Index™ composed of the seven publicly traded auto retail companies with operations focused on the US market. The Kerrigan Auto Retail Index is designed to track dealership valuation trends, while also providing key insights into factors influencing auto retail. To access The Kerrigan Index™, click here. To read the 2023 Kerrigan Dealer Survey, click here. To read the 2024 Kerrigan OEM Survey, click here. Kerrigan Advisors also is the co-author of NADA’s Guide to Buying and Selling a Dealership.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240813880612/en/

Kerrigan Advisors Media Contact:

Melanie Webber (melanie@mwebbcom.com), mWEBB Communications, 949-307-1723

Source: Kerrigan Advisors

FAQ

What was the recent transaction involving Asbury Automotive Group (ABG)?

Asbury Automotive Group (NYSE: ABG) recently sold its Nalley Chevrolet dealership in Union City, Atlanta, to ALM Automotive Group. The transaction was facilitated by Kerrigan Advisors.

How many dealerships has Kerrigan Advisors sold to date?

Kerrigan Advisors has sold 276 dealerships since inception, with 70 franchises sold year-to-date.

What was Asbury Automotive Group's (ABG) reported revenue for 2023?

Asbury Automotive Group (NYSE: ABG) reported $14.8 billion in revenue for 2023.

How did Chevrolet's sales performance compare to other brands in 2023?

Chevrolet grew sales by 13% in 2023, outpacing Ford (+7.5%) and CDJR (-1.2%).