Herb Chambers Companies Selling for $1.34B to Asbury Automotive Group

Georgia’s Asbury Automotive Group will acquire New England’s Herb Chambers Companies for $1.34 billion in a deal announced Tuesday.

Asbury Automotive Group expects to close the sale of Herb Chambers, which includes 33 dealerships, 52 franchises, and three collision centers in Massachusetts and Rhode Island, later this year.

The sale will mark the end of decades of ownership by Herb Chambers, the man of the same name. Chambers bought his first automobile dealership in New London, Connecticut, in 1985. The company has expanded throughout the region to become the 14th largest private dealership in the U.S. 

Chambers, the principal of the Herb Chambers Companies, agreed to become Asbury’s Special Advisor and will retain ownership of the Mercendes-Benz of Boston in Somerville. 

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,” Chambers, 83, said in a statement. 

According to financial documents, the sale includes $750 million for “goodwill”—the company’s built-up reputation — and around $590 million for real estate and improvements. 

The announcement said that Herb Chambers Companies employs more than 2,200 people and brought in $2.9 billion in revenue last year. 

Asbury Automotive Group is a Fortune 500 company. As of last year, it operated 152 new vehicle dealerships, consisting of 198 franchises representing 31 domestic and foreign vehicle brands. Asbury also operates the car insurance company Total Care Auto and 37 collision repair centers. 

“Herb is an icon in Boston, and he has built a world class organization, with a strong reputation for serving his guests and being highly engaged in the communities,” David Hult, Asbury’s President and CEO, said in a statement.

Article via Boston.com