Asbury Automotive sells Colorado, Georgia Nissan car dealerships

Asbury Automotive Group Inc. sold single Nissan dealerships in Colorado and Georgia during the second quarter, the national auto retailer said Aug. 2.

Asbury identified the Georgia store only as "Nalley Nissan – Georgia" in an investor presentation and did not reply to an email request for clarification. However, the location that changed hands appears to be Nalley Nissan of Cumming, whose website indicates it has been renamed Nissan of Cumming. On Aug. 5, the location was absent from Asbury's online list of Georgia stores. A representative of Nissan of Cumming reached by phone Aug. 2 confirmed the store had recently been acquired, though he declined to give his name. The new owner's identity was unclear.

The other location, Larry H. Miller Nissan 104th in Denver, is now Alpine Nissan of Denver and part of Alpine Automotive Group, group co-owner Ivette Dominguez said Aug. 5. She said Alpine closed on the transaction June 10.

"Thank goodness it was right before the CDK issue," Dominguez said, referring to CDK Global's precautionary shutdown of its auto retail software following two cyberattacks at the technology company June 19.

The Colorado and Georgia Nissan locations collectively generated $97 million in revenue, Asbury said in the investor presentation. As far as the price tag, Asbury on Aug. 2 reported a combined $3.6 million gain from all divestitures during the quarter. However, it also referenced $2.7 million generated from divestitures while discussing adjusted net income in the same earnings release. Asbury has not yet responded to an email seeking for clarification on the difference between the two figures.

"They were great to work with," Dominguez said of Asbury.

Dominguez said her group, which now has five locations, had been wanting to buy a store in the area. However, other sellers' asking prices were too high.

"It has to kind of make sense," Dominguez said in describing her group's acquisition sentiment.

The buy-sell market in general continues to be overpriced, Lithia Motors Inc. CEO Bryan DeBoer said during a second-quarter earnings call this month.

"The marketplace is pricing acquisitions close to three years' average earnings on inflated earnings, so when we look at that and the opportunity, that's not that appealing because we typically look at pretty high returns" on acquisition price, DeBoer said Aug. 1. However, "we think that will subside," he said.

Dominguez said Alpine also had been seeking a store that sold an affordable brand because consumers' wallets were stretched by the cost of housing in the area. The Nissan location fit the bill, she said.

Asbury had entered the second quarter with $242.7 million in assets it planned to sell: 10 franchised dealerships and a piece of unused real estate, according to a government filing.

It was unclear whether the two Nissan locations were part of that list or flagged for divestiture following the first quarter. CEO David Hult said on an earnings call Aug. 2 that Asbury would "continue to monitor opportunities to make other changes throughout the year."

Asbury, of Duluth, Ga., ranks No. 5 on Automotive News' list of the top 150 dealership groups based in the U.S., with retail sales of 149,509 new vehicles in 2023. Lithia, of Medford, Ore., ranks No. 1 on the list, with retail sales of 314,116 new vehicles that year.