The Presidio Group Advises Asbury Automotive Group on the Sale of Larry H. Miller Toyota Corona in California

Asbury Automotive Group (ABG) has sold its Toyota dealership in Corona, California, to Mike Hong and Jerry Heuer in a deal advised by The Presidio Group. The sale, part of Asbury's divestiture of assets acquired in the Larry H. Miller Dealerships purchase, is expected to maximize shareholder value. Presidio anticipates increased dealership M&A activity through 2025, citing a robust deal pipeline and growing interest from both buyers and sellers in the automotive retail sector.

Analysis

Asbury Automotive Group (NYSE: ABG) has successfully divested a Toyota dealership in Corona, California, a transaction advised by The Presidio Group, which closed on June 9. This sale represents a strategic move for Asbury, likely aimed at portfolio optimization following its large-scale acquisition of Larry H. Miller Dealerships in December 2021, and is explicitly stated to have been structured to maximize shareholder value. The continued engagement of The Presidio Group, which has facilitated numerous transactions for Asbury, underscores a strong advisory relationship. Significantly, The Presidio Group forecasts a strengthening of dealership M&A activity through the remainder of 2025, citing a robust deal pipeline and increasing interest from both buyers and sellers. This outlook suggests an anticipated rebound from a slower first quarter in 2025 for deal counts, positioning the automotive retail industry for a more active second half. For Asbury, which as of March 31, 2025, operated 150 new-vehicle dealerships and has a multiyear strategic plan focused on revenue and profitability growth via organic operations, acquisitions, and technology, this divestiture aligns with disciplined capital allocation. The positive sentiment score of 0.7 for ABG associated with this news further supports the interpretation of this as a constructive strategic development.

Key Decisions for Investors

• Investors should consider this dealership sale as a component of Asbury's ongoing strategy to refine its asset portfolio and enhance shareholder value, particularly in the context of integrating larger acquisitions like Larry H. Miller Dealerships.
• Monitor Asbury's M&A activities, both divestitures and potential acquisitions, in light of The Presidio Group's forecast for increased M&A transaction pace in the automotive retail sector through 2025, which could present further strategic opportunities for the company.
• Evaluate Asbury's execution of its multiyear growth plan, considering how such transactions contribute to its objectives of increasing revenue and profitability through a combination of organic growth, strategic M&A, and technological innovation.