Asbury sells heavy truck business, adds franchises
Asbury Automotive Group, the Duluth-based car retail and service company, agreed to sell its heavy truck business, added five South Carolina franchises and announced a plan to repurchase stock.
The heavy truck business, Nalley Motor Trucks, will be sold to Rush Enterprises in Texas. Asbury expects an annual increase in pre-tax income of about $2 million, which will be reinvested into the company's car sales business, senior vice president and chief financial officer Craig T. Monaghan said in a statement. Terms of the deal were not disclosed.
"The sale of our heavy truck business represents a strategic decision to exit a non-core business," he said.
Asbury also acquired Greenville Automotive Group, which includes Lexus, Toyota, Jaguar, Porsche and Volvo brands in Greenville, S.C. The market is a strong one within Asbury's existing footprint, president and CEO Charles R. Oglesby said in the statement. Asbury estimated annual revenues related to the acquisition would be $125 million.
The company operates 84 retail auto stores with 114 franchises.
Additionally, Asbury announced the company would repurchase $25 million of common stock. Asbury had $79 million in cash and cash available at the end of the third quarter.
Oglesby also said the company will look for opportunities to reduce its leverage and operating leases going forward.
About the Author
Arielle Kass covers Gwinnett County for The Atlanta Journal-Constitution. She started at the paper in 2010, and has covered business and local government beats around metro Atlanta. Arielle is a graduate of Emory University.
