ATLANTA -- Asbury Automotive Group Inc. is divesting its last four stores in Arkansas and getting out of that market.
Asbury CFO Keith Style told Automotive News on Tuesday that a deal is in place to sell the Ford, Toyota, BMW and Volvo stores in Little Rock, Ark., and should be finalized in December.
Asbury CEO Craig Monaghan said the company has an acquisition lined up in another state and expects to sign a contract on that deal “any day now.”
“The profit from the stores that we are acquiring would actually more than offset the profit from the stores that we’re divesting, so we think it’s a good value added transaction for the company,” said Monaghan.
He declined to say how many stores are included in the acquisition deal. He did note that the stores being acquired are located “on the periphery of our current footprint.”
Down from eight
Asbury had owned eight stores in Arkansas. It sold four of them -- two Nissan stores and a Volkswagen and Mazda store -- last December to McLarty Automotive.
“We didn’t have a strong presence in that market,” Monaghan said. “It was not one of our better performing markets, and we just felt we’d be better off deploying the assets elsewhere.”
The remaining four stores in Arkansas represent about $240 million in annual revenue, Style said. The dealerships Asbury is working to acquire aren’t as large on the revenue side but are more profitable than the stores being divested.
Asbury, of Duluth, Ga., ranks No. 7 on Automotive News’ list of the top 150 dealership groups based in the U.S., with retail new-vehicle sales of 105,981 units in 2015.