Asbury Automotive Group, Inc. (NYSE: ABG), one of the U.S.’ largest automotive retail and service companies, has agreed to buy Jim Koons Automotive Companies, the ninth largest privately-owned dealership group in the U.S., in one of the most sizable deals in auto retail history.

The deal, which is expected to close in the fourth quarter of 2023 or early in the first quarter of 2024, will add 20 dealerships, 29 franchises, six collision centers and one of the highest volume Toyota and Stellantis dealerships in the US to Asbury’s portfolio.

Jim Koons Automotive Companies was founded in 1973 by Jim Koons, who took over his father’s dealership, Koons Ford in Falls Church, which had been founded in 1964.

The group has grown steadily over the years, becoming one of only 13 private groups with over $3 billion in revenue in 2022.

The group operates top volume franchises including Toyota, Lexus, Mercedes-Benz, Ford, Kia, Hyundai, Volvo, Stellantis and General Motors in the thriving Washington-Baltimore market, the 4th largest CSA in the US by population per 2020 census data.

The acquisition will enable Asbury to expand into one of the country’s top economies in one of its fastest growing regions, with some of the U.S.’ best performing dealerships. Asbury currently operates 138 dealerships, representing 31 domestic and foreign brands, as well as 32 collision repair centers.

Asbury expects the Koons dealerships’ profitability to be generally in line with its own dealerships.

Both Asbury and Koons share a strong emphasis on people – employees and community – and for giving back. Koons is known for its high customer satisfaction scores and sales volumes, as well as its multiple awards from automakers.

Koons is also recognized as a top place to work by the Washington Post and Washington Business Journal. Jim Koons is in the Ford Hall of Fame and received an honorary doctorate from his alma mater, Northwood University. Jim Koons and his wife, Cece are longtime philanthropists.

The financial details of the cash and stock agreement were not disclosed. The transaction is subject to customary closing conditions and regulatory approvals. Kerrigan Advisors was the exclusive sell-side advisor on the transaction, representing Koons.

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