Benzinga | Sep 29, 2021 08:13AM EDT

Asbury Automotive Acquires Larry H. Miller Dealerships, Total Care Auto For $3.2B

* Asbury Automotive Group Inc (NYSE:ABG) has agreed to acquire Larry H. Miller Dealerships and Total Care Auto (TCA), Powered by Landcar, for an aggregate of $3.2 billion, including $740 million of real estate.

* The acquisition will add about $5.7 billion in annualized revenue.

* The transaction will expand the company's presence into six Western states: Arizona, Utah, New Mexico, Idaho, California, and Washington.

* The operating assets acquired include 54 new vehicle dealerships, seven used vehicle dealerships, and 11 collision centers.

* Asbury expects the acquisition of these entities, assuming the fourth quarter of 2021 closing date and equity financing of $600 million, to be approximately 14% accretive to 2022 EPS, with 2024 EPS accretion expected to be 20%.

* Asbury has secured committed bridge financing in support of the acquisition. It held $102.3 million in cash and equivalents as of June 30, 2021.

* Price Action: ABG shares closed lower by 2.02% at $198.82 on Tuesday.