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Large auto retail acquisition assisted by Baker Tilly

Asbury Automotive Group, one of the largest automotive retail and service companies, has completed the acquisition of Jim Koons Automotive Companies, the ninth largest privately owned dealership group in the U.S. This sale includes 20 dealerships, 29 franchises and six collision centers. Baker Tilly is proud to have been a part of this deal, preparing the closing statements and representing Koons on the accounting side of the transaction.

The acquisition had a purchase price of $1.2 billion including $740 million of goodwill, $420 million of real estate and leasehold improvements as well as vehicle inventory, parts inventory and fixed assets of the dealerships. Asbury anticipates that Koons’ dealership profitability will be in line with the profitability of Asbury’s dealerships.

This transaction will extend Asbury’s footprint in the Washington-Baltimore market as Koons was the dominant retailer in that area. Koons’ had over $3 billion in revenue in 2022, brought in by their top volume franchises including Toyota, Lexus, Mercedes-Benz, Ford, Kia, Hyundai, Volvo, Stellantis and General Motors. According to Automotive News, Koons’ revenue per dealership ranked 10th overall in 2022 and 5th in the U.S. for groups with more than $2 billion in revenue.

Koons, known for their exceptional employee relations, is excited for this transition. Jim Koons, Chairman of Jim Koons Automotive Companies, states, “We are so pleased to see the successful transition of our company to Asbury, knowing that being part of this sterling organization will provide tremendous career opportunities for our employees and a continuation of exceptional service to our customers and community… Our transaction with Asbury was a large and complex one, and the excellent and dedicated teamwork demonstrated by both companies is a clear indicator of its future success.”

For this transaction, Koons had Holland & Knight as legal counsel and Baker Tilly as the transaction accounting firm. Asbury had Jones Day and Hill Ward Henderson as legal counsel and FORVIS as their transaction advisory firm.

Asbury Automotive Group is a Fortune 500 company with headquarters in Duluth, GA. As one of the largest automotive retailers in the U.S., Asbury embarked on a five year plan to increase revenue and profitability through organic and acquisitive growth in addition to their innovative Clicklane digital vehicle purchasing platform. Prior to this acquisition, Asbury operated 158 new vehicle dealerships consisting of 210 franchises representing 31 domestic and foreign brands of vehicles. Asbury also operates Total Care Auto, Powered by Landcar, which provides service contracts and other vehicle protection products, as well as 37 collision repair centers and an extensive range of automotive products and services.

Koons, one of the largest private auto dealership groups and the #1 automotive retailer in the Washington-Baltimore region for over 25 years, employs over 2,500 people across 20 locations in the Washington D.C., Baltimore and Philadelphia region.

This acquisition is expected to bring in approximately $3 billion in expected annualized revenues and both companies are excited for their combined futures. Baker Tilly was proud to serve as the transaction accounting firm to Koons and prepare the closing statements.

For more information on this topic, or learn how Baker Tilly specialists can help, contact our team.
A. Michael Mader

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