Friday, March 29

Asbury back in the market to buy car dealerships – Automotive News

Asbury Automotive Group Inc. exereduceives say the retailer has reduce enough debt from its books To renew buying for dealerships.

Asbury CFO Michael Welch informed analysts final week that the retailer Did not plan To hunt new acquisitions till it had reduce its leverage to 2 occasions earnings. CEO David Hult informed Automotive Information on Monday that Asbury’s debt ratio is shut enough to That time for the dealership group to re-enter the buy-promote market.

That ratio had been 2.7 in December 2021, the month Asbury shutd on its $3.48 billion acquisition of Larry H. Miller Dealerships and LHM’s Complete Care Auto finance and insurance coverage merchandise supplier. On The prime of June, Asbury carried debt Of two.1 occasions what it earned earlier than curiosity, taxes, depreciation and amortization, as quickly as adsimplyed for the influence of acquisitions and divestitures.

“We’re at The extent We now Want to be at,” Welch said final week.

Hult said Asbury had shed leverage faster than anticipated.

“We’re contemplating strategically aligned alternatives for disciplined progress,” Hult said final week.

Welch said Asbury would prioritize acquisitions, although he Did not rule out placing The agency’s elevated monetary power in the direction of inventory buybacks as properly.

However Asbury Will not buy for measurement’s sake, Hult said. Instead, the dealership group intends to pursue “extreme quality belongings that align with who we are” and Can be worthwhile for the group, he said.

When Asbury introduced the Larry H. Miller deal in September, it disshutd a $3.2 billion buy worth, to be financed with about $600 million in equity and $2.6 billion in debt. The agency’s annual report, launched in Might, revealed The final value to …….

Source: https://www.autonews.com/dealers/asbury-back-market-buy-car-dealerships