Asbury Automotive Group Sells Six Dealerships to MileOne Autogroup
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Should l Buy ABG?
Source: Newsfilter
- Transaction Overview: Asbury Automotive Group completed the sale of six Plaza Motors dealerships and a collision center to MileOne Autogroup on February 23, involving brands like Plaza Mercedes-Benz, marking Asbury's strategic exit from the St. Louis market.
- Strategic Decision: The decision to sell reflects Asbury's broader portfolio management initiative following significant growth, particularly after its 2025 acquisition of 33 dealerships, aimed at optimizing resource allocation to achieve long-term objectives.
- Market Impact: MileOne enters a new market with immediate scale and a strong mix of luxury brands through this acquisition, with CEO Steve Fader noting that such acquisitions are extremely rare in the U.S. dealership market, aligning perfectly with their expansion strategy.
- Advisory Role: The Presidio Group served as exclusive M&A advisor to Asbury, providing crucial transaction guidance and emphasizing its expertise in automotive retail and M&A trends, further solidifying its long-term partnership with Asbury.
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Analyst Views on ABG
Wall Street analysts forecast ABG stock price to rise
4 Analyst Rating
0 Buy
3 Hold
1 Sell
Hold
Current: 219.510
Low
230.00
Averages
238.33
High
250.00
Current: 219.510
Low
230.00
Averages
238.33
High
250.00
About ABG
Asbury Automotive Group, Inc. is an automotive retailer. The Company operates through two segments: Dealerships and Total Care Auto (TCA). The Company offers a range of automotive products and services fulfilling the entire vehicle ownership lifecycle, including new and used vehicles, parts and services, which include vehicle repair and maintenance services, replacement parts and collision repair services, and finance and insurance (F&I) products, including arranging vehicle financing through third parties and aftermarket products, such as extended service contracts, guaranteed asset protection debt cancellation and prepaid maintenance plans. The Company operates approximately 175 new-vehicle dealerships, consisting of over 230 franchises and representing 36 domestic and foreign brands of vehicles. It also operates Total Care Auto, Powered by Landcar, a provider of service contracts and other vehicle protection products, and 39 collision repair centers.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Asbury Automotive Group Sells Six Dealerships to MileOne Autogroup
- Transaction Overview: Asbury Automotive Group completed the sale of six Plaza Motors dealerships and a collision center to MileOne Autogroup on February 23, involving brands like Plaza Mercedes-Benz, marking Asbury's strategic exit from the St. Louis market.
- Strategic Decision: The decision to sell reflects Asbury's broader portfolio management initiative following significant growth, particularly after its 2025 acquisition of 33 dealerships, aimed at optimizing resource allocation to achieve long-term objectives.
- Market Impact: MileOne enters a new market with immediate scale and a strong mix of luxury brands through this acquisition, with CEO Steve Fader noting that such acquisitions are extremely rare in the U.S. dealership market, aligning perfectly with their expansion strategy.
- Advisory Role: The Presidio Group served as exclusive M&A advisor to Asbury, providing crucial transaction guidance and emphasizing its expertise in automotive retail and M&A trends, further solidifying its long-term partnership with Asbury.
See More
Automakers Warn of Rising Prices Due to Tariffs
- Tariff Impact Intensifies: Sonic Automotive President Jeff Dyke warns that unsustainable tariff costs will lead automakers to either raise prices or cut features, indicating a pressing urgency within the industry and potential future price pressures.
- Limited Price Fluctuations: Despite only a 1% increase in vehicle prices since the Trump administration's tariffs, analyst Jessica Caldwell notes a surge in used vehicle demand as consumers anticipate new car price hikes, highlighting market sensitivity to pricing changes.
- Toyota's Financial Strain: Toyota reported a 25% drop in net income for the first nine months of fiscal year 2026, with tariffs costing approximately 1.2 trillion yen (around $8 billion), underscoring the significant impact of tariffs on major automakers and their profitability.
- Future Production Adjustments: Toyota may consider relocating some production back to the U.S. based on the outcomes of U.S.-Mexico-Canada trade negotiations, particularly for its Tacoma pickup made in Mexico, reflecting the company's strategic flexibility in addressing tariff challenges.
See More
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- Tax Impact on Buying Intent: With tax season underway, the average tax refund for Americans is projected to rise by 10.9% to $2,290, potentially encouraging consumers priced out of the new vehicle market to reconsider purchases, thereby offering a short-term sales boost for the automotive industry.
- Historical Sales Trends: March is typically a peak month for U.S. vehicle sales, averaging 9.1% of annual new vehicle sales over the past 12 years, second only to December at 9.3%, suggesting that tax changes could drive a rebound in sales during this critical period.
- Loan Condition Changes: Despite current federal interest rates between 3.5% and 3.75%, leading to higher financing costs, consumers are agreeing to longer-term loans, with Carmax reporting an average monthly payment of $772 for new vehicles, reflecting buyers' adaptive strategies in a high-price environment.
- Low Consumer Confidence: Even with additional tax funds, consumer confidence fell to 84.5 in January, the lowest since May 2014, indicating that high prices and a weakening labor market negatively impact purchasing decisions, leaving buying intent under significant pressure.
See More
Park Place Breaks Ground on New Porsche and Expanded Volvo Dealerships
- New Dealership Construction: Park Place Dealerships has broken ground on a new Porsche dealership and an expanded Volvo facility on Lemmon Avenue in Dallas, representing a significant investment in the future of luxury automotive retail in North Texas, expected to enhance client experience.
- Project Scale and Timeline: The project encompasses 15 acres of land, with the new Porsche dealership slated for completion in 2027, while the Volvo service center is expected to be finished in early 2027, improving client convenience and service efficiency.
- Enhanced Customer Experience: The renovated Volvo sales facility will feature a modern showroom and client lounge after eight months of renovations, aimed at providing a more comfortable environment and efficient service, further enhancing customer loyalty.
- Strategic Positioning and Market Impact: The new Park Place Porsche dealership is anticipated to become one of the premier dealerships in the country, enhancing its competitiveness in the luxury automotive market by delivering high-level customer service, aligning with Asbury Automotive Group's long-term growth strategy.
See More
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- Transaction Completion: The Matt Bowers Automotive Group successfully acquired Bill Estes Chrysler Dodge Jeep Ram on February 2, 2026, marking its first dealership location in Indiana and expanding its footprint across five states, thereby enhancing its market competitiveness.
- Strategic Expansion: This acquisition adds a third franchise under the Chrysler Dodge Jeep Ram brand for Matt Bowers Automotive Group, signifying its ongoing growth and diversification in the U.S. automotive retail market.
- Advisory Role: Hacman Financial served as the exclusive buy-side advisor, assisting Matt Bowers Automotive Group in completing the transaction, showcasing its expertise and influence in the automotive dealership M&A sector.
- Legal Support: Becker & Hebert, LLC provided legal counsel to Matt Bowers Automotive Group, while Hill Ward Henderson represented Asbury Automotive Group, ensuring compliance and smooth execution of the transaction.
See More
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- Strong Financial Performance: Asbury Automotive Group reported a record $4.7 billion in revenue and $793 million in gross profit for Q4 2025, achieving a gross profit margin of 17%, indicating robust market performance and profitability.
- Strategic Divestitures: The company divested 4 stores in the quarter and plans to divest another 9 by the end of Q1, with these 13 transactions collectively representing $750 million in annualized revenue, aimed at accelerating leverage reduction and optimizing the asset portfolio.
- Technology Upgrade Progress: The rollout of the Tekion system expanded to 15 additional stores in Q4, bringing the total to 38, with a full deployment across all platforms expected by fall 2026, enhancing operational efficiency and customer experience.
- Cautious Future Outlook: Management anticipates challenges in the first half of 2026 due to weather and transitional impacts, yet remains optimistic about long-term benefits, emphasizing ongoing investments and cost control strategies.
See More
Asbury Automotive Group Sells Six Dealerships to MileOne Autogroup
- Transaction Overview: Asbury Automotive Group completed the sale of six Plaza Motors dealerships and a collision center to MileOne Autogroup on February 23, involving brands like Plaza Mercedes-Benz, marking Asbury's strategic exit from the St. Louis market.
- Strategic Decision: The decision to sell reflects Asbury's broader portfolio management initiative following significant growth, particularly after its 2025 acquisition of 33 dealerships, aimed at optimizing resource allocation to achieve long-term objectives.
- Market Impact: MileOne enters a new market with immediate scale and a strong mix of luxury brands through this acquisition, with CEO Steve Fader noting that such acquisitions are extremely rare in the U.S. dealership market, aligning perfectly with their expansion strategy.
- Advisory Role: The Presidio Group served as exclusive M&A advisor to Asbury, providing crucial transaction guidance and emphasizing its expertise in automotive retail and M&A trends, further solidifying its long-term partnership with Asbury.
See More
Automakers Warn of Rising Prices Due to Tariffs
- Tariff Impact Intensifies: Sonic Automotive President Jeff Dyke warns that unsustainable tariff costs will lead automakers to either raise prices or cut features, indicating a pressing urgency within the industry and potential future price pressures.
- Limited Price Fluctuations: Despite only a 1% increase in vehicle prices since the Trump administration's tariffs, analyst Jessica Caldwell notes a surge in used vehicle demand as consumers anticipate new car price hikes, highlighting market sensitivity to pricing changes.
- Toyota's Financial Strain: Toyota reported a 25% drop in net income for the first nine months of fiscal year 2026, with tariffs costing approximately 1.2 trillion yen (around $8 billion), underscoring the significant impact of tariffs on major automakers and their profitability.
- Future Production Adjustments: Toyota may consider relocating some production back to the U.S. based on the outcomes of U.S.-Mexico-Canada trade negotiations, particularly for its Tacoma pickup made in Mexico, reflecting the company's strategic flexibility in addressing tariff challenges.
See More
U.S. Automotive Industry Faces Spring Test Amid Tax Season
- Tax Impact on Buying Intent: With tax season underway, the average tax refund for Americans is projected to rise by 10.9% to $2,290, potentially encouraging consumers priced out of the new vehicle market to reconsider purchases, thereby offering a short-term sales boost for the automotive industry.
- Historical Sales Trends: March is typically a peak month for U.S. vehicle sales, averaging 9.1% of annual new vehicle sales over the past 12 years, second only to December at 9.3%, suggesting that tax changes could drive a rebound in sales during this critical period.
- Loan Condition Changes: Despite current federal interest rates between 3.5% and 3.75%, leading to higher financing costs, consumers are agreeing to longer-term loans, with Carmax reporting an average monthly payment of $772 for new vehicles, reflecting buyers' adaptive strategies in a high-price environment.
- Low Consumer Confidence: Even with additional tax funds, consumer confidence fell to 84.5 in January, the lowest since May 2014, indicating that high prices and a weakening labor market negatively impact purchasing decisions, leaving buying intent under significant pressure.
See More
Park Place Breaks Ground on New Porsche and Expanded Volvo Dealerships
- New Dealership Construction: Park Place Dealerships has broken ground on a new Porsche dealership and an expanded Volvo facility on Lemmon Avenue in Dallas, representing a significant investment in the future of luxury automotive retail in North Texas, expected to enhance client experience.
- Project Scale and Timeline: The project encompasses 15 acres of land, with the new Porsche dealership slated for completion in 2027, while the Volvo service center is expected to be finished in early 2027, improving client convenience and service efficiency.
- Enhanced Customer Experience: The renovated Volvo sales facility will feature a modern showroom and client lounge after eight months of renovations, aimed at providing a more comfortable environment and efficient service, further enhancing customer loyalty.
- Strategic Positioning and Market Impact: The new Park Place Porsche dealership is anticipated to become one of the premier dealerships in the country, enhancing its competitiveness in the luxury automotive market by delivering high-level customer service, aligning with Asbury Automotive Group's long-term growth strategy.
See More
Matt Bowers Automotive Group Acquires Bill Estes Chrysler Dodge Jeep Ram
- Transaction Completion: The Matt Bowers Automotive Group successfully acquired Bill Estes Chrysler Dodge Jeep Ram on February 2, 2026, marking its first dealership location in Indiana and expanding its footprint across five states, thereby enhancing its market competitiveness.
- Strategic Expansion: This acquisition adds a third franchise under the Chrysler Dodge Jeep Ram brand for Matt Bowers Automotive Group, signifying its ongoing growth and diversification in the U.S. automotive retail market.
- Advisory Role: Hacman Financial served as the exclusive buy-side advisor, assisting Matt Bowers Automotive Group in completing the transaction, showcasing its expertise and influence in the automotive dealership M&A sector.
- Legal Support: Becker & Hebert, LLC provided legal counsel to Matt Bowers Automotive Group, while Hill Ward Henderson represented Asbury Automotive Group, ensuring compliance and smooth execution of the transaction.
See More
Asbury Automotive Group Q4 2025 Earnings Call Insights
- Strong Financial Performance: Asbury Automotive Group reported a record $4.7 billion in revenue and $793 million in gross profit for Q4 2025, achieving a gross profit margin of 17%, indicating robust market performance and profitability.
- Strategic Divestitures: The company divested 4 stores in the quarter and plans to divest another 9 by the end of Q1, with these 13 transactions collectively representing $750 million in annualized revenue, aimed at accelerating leverage reduction and optimizing the asset portfolio.
- Technology Upgrade Progress: The rollout of the Tekion system expanded to 15 additional stores in Q4, bringing the total to 38, with a full deployment across all platforms expected by fall 2026, enhancing operational efficiency and customer experience.
- Cautious Future Outlook: Management anticipates challenges in the first half of 2026 due to weather and transitional impacts, yet remains optimistic about long-term benefits, emphasizing ongoing investments and cost control strategies.
See More
