Asbury Automotive (ABG): Strategic Acquisition of Herb Chambers

By Patricia Miller

Feb 19, 2025

1 min read

Asbury expands with a $1.34B deal, adding 33 dealerships and $2.9B in revenue. What does this mean for investors? Growth, market share, and opportunity.

Rear view of new luxury red and white car parked in modern show room. Selective focus on white shiny car. Car dealership concept. Showroom interior. Automotive industry

#What You Need to Know

Asbury Automotive has announced its agreement to acquire the Herb Chambers Companies for $1.34 billion. This acquisition includes 33 dealerships, 52 franchises, and three collision centers.

The transaction is expected to enhance Asbury’s market presence and operational capabilities. The deal has been facilitated by financial advisement from various firms, demonstrating the strategic importance of this acquisition to Asbury’s growth plans.

Sign up for Investing Intel Newsletter

Get the latest news and updates from our team.

I agree to the privacy policy.

#Why This Is Important for Retail Investors

  • Expanded Market Presence: Acquiring The Herb Chambers Companies adds 33 dealerships and 52 franchises to Asbury’s portfolio, enhancing its market position in the Northeast.

  • Revenue Growth Potential: The Herb Chambers Companies generated $2.9 billion in revenue in 2024. This acquisition could boost Asbury’s top-line performance and long-term profitability.

  • Capital Allocation Strategy: Asbury is funding the deal through a mix of credit facilities, mortgage proceeds, and cash, which could impact its balance sheet and future financial flexibility.

  • Stock Valuation Considerations: The acquisition's impact on Asbury’s financials may influence investor sentiment and stock price movements, creating potential entry points for retail investors.

  • Leadership Transition: Herb Chambers will remain as a Special Advisor, which may provide continuity and strategic insight during the integration process.

#Relevant ETFs

  • Invesco S&P 500 Equal Weight Consumer Discretionary ETF

  • SPDR S&P 500 ETF Trust

  • iShares U.S. Transportation ETF

  • First Trust Nasdaq Global Auto ETF

  • Invesco QQQ Trust

  • VanEck Vectors Retail ETF

Who Really Owns Bitcoin?

Related Articles:

Explore more on these topics:

Stocks Retailing Exchange Traded Fund (ETF) Investment Banking and Brokerage Automobiles Industrials Consumer Discretionary

Important Notice And Disclaimer

This article does not provide any financial advice and is not a recommendation to deal in any securities or product. Investments may fall in value and an investor may lose some or all of their investment. Past performance is not an indicator of future performance.

Patricia Miller does not hold any position in the stock(s) and/or financial instrument(s) mentioned in the above article.

Patricia Miller has not been paid to produce this piece by the company or companies mentioned above.

Digitonic Ltd, the owner of ValueTheMarkets.com, does not hold a position or positions in the stock(s) and/or financial instrument(s) mentioned in the above article.

Digitonic Ltd, the owner of ValueTheMarkets.com, has not been paid for the production of this piece by the company or companies mentioned above.