Asbury Automotive Group is paying $750 million for the Chambers brand and $590 million for the real estate
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by Brad Anderson
7 hours ago
- The sale includes 33 dealerships, 52 franchises, and three collision centers in two states.
- Herb Chambers employs more than 2,200 people through his expansive dealer network.
- The value of existing inventory, parts, and supplies will be determined at a later date.
A mega group of auto dealerships across Massachusetts and Rhode Island have been sold in a massive deal worth $1.34 billion. This week, Asbury Automotive Group said it will purchase dozens of dealerships owned by The Herb Chambers Companies across the region, as one of Boston’s best-known businessmen relinquishes the reigns to his eponymous business.
For four decades, Herb Chambers has been one of the most prominent names in the automotive sector across New England. His company is one of the largest private auto dealership groups in the United States and currently employs more than 2,200 people. Through his deal with the publicly traded Asbury Automotive Group, Chambers will part ways with 33 dealerships, 52 franchises, and three collision centers.
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Asbury is funding the sale with cash, mortgage proceeds, and credit facility capacity. The deal consists of $750 million for the value of the Chambers brand and $590 million for the real estate. When the deal closes in the summer, Asbury will also pay a yet-to-be-determined amount for other important assets of the dealer group, including parts, supplies, and its expansive vehicle fleet.
Chambers’ expansive auto empire reported $2.9 billion in revenue last year. He will retain ownership of a single Mercedes-Benz dealership in Somerville. When the deal with Asbury closes, Chambers will be appointed as a Special Adviser.
Speaking with Boston Globe, Chambers said Asbury first approached him about a potential sale a year ago.
“As I look back on the last 40 years in business, I do so with immense pride, and as I look forward, I will do so with great satisfaction knowing what we built together will be in trusted hands,” he said after the deal was announced. “David Hult and the Asbury Automotive Group share our customer-focused philosophy which will remain as the foundation from which they move our great company into the future.”
