Asbury Automotive Group Inc – Auto Stocks 2021
Asbury Automotive Group is one of the largest auto dealership companies in the US. It operates more than 90 stores and 25 collision centers. Asbury’s presence is predominantly in Texas and the southeastern part of the US. Most of Asbusy’s car sales are in the luxury segment. The company has been growing lately through acquisitions. Parts and services segments have relatively higher margins, and even with the transition to electric vehicles, the demand for service is expected to sustain. So, the long-term prospects of Asbury Automotive are bright. The Asbury Automotive Group had revenues of more than $7 billion in 2020. It also operated vehicle franchises besides various brands at its dealerships. If you are looking for truck stocks 2021, then Asbury Automotive Group is not exactly the right fit. However, it is one of the leading dealerships if the auto sector is of interest to you.
Asbury Automotive Group’s Business Details
Asbury Automotive Group is headquartered in Duluth, Georgia. Its stores offer customers with a wide variety of auto parts, services, and financing options. The company is not just a seller of new and used cars. The vehicle financing arm of the Asbury Automotive Group arranges financing through third-party providers. In December 2019, the Asbury Automotive Group had acquired all the entities of the Park Place Dealership. This included 19 franchises, two collision centers, and one auto auction. However, the deal fell through, and in March 2020, the Asbury Automotive Group sent a notice of termination to the sellers. The deal would have further increased the footprint of the Asbury Automotive Group in the south market as Park Place was a Texas-based limited partnership. More on that below. If you are considering making investments in auto stocks 2021, then it would be a good idea to focus on geographic markets and find companies other than traditional auto majors.
Truck Stocks 2021
On 6th July 2020, Asbury Automotive Group re-entered into an agreement with Park Place Dealership to acquire substantial assets of the partnership. It then followed up that purchase with another deal in December 2020 to purchase the assets of 3 other franchises in Denver, Colorado.