Asbury Sells 10 Dealerships, Boosts Share Buyback Plan to $500M

ATLANTA, GA – February 25, 2026 – Asbury Automotive Group, Inc. (NYSE: ABG) has executed a significant strategic shift, announcing the sale of ten dealerships across three states and simultaneously bolstering its commitment to shareholder returns with a massive increase in its share repurchase authorization to $500 million.

The Fortune 500 auto retailer generated approximately $210 million in net proceeds from the divestitures, which involved stores in Indiana, Missouri, and South Carolina. The company stated the move is part of a broader portfolio optimization strategy designed to reallocate capital to more profitable ventures, accelerate debt reduction, and reward investors.

“The sale of these stores was the right decision for Asbury to ensure capital is being used for its highest return to shareholders,” said David Hult, Asbury’s president and chief executive officer, in a statement. He confirmed the proceeds would be used to lower the company's leverage and fund the newly expanded buyback program.

A Strategic Slimming

The ten divested dealerships, which collectively contributed around $610 million in annualized revenue, were sold to several different automotive groups in a series of transactions. This move streamlines Asbury’s operational footprint while unlocking significant capital.

The largest part of the sale involved six Plaza Motors dealerships and a collision center in the St. Louis, Missouri market, which were acquired by Maryland-based MileOne Autogroup on February 23. The sold franchises include high-profile luxury brands such as Plaza Mercedes-Benz, Mercedes-Benz of Chesterfield, Plaza BMW, Land Rover St. Louis, Audi Creve Coeur, and Plaza Infiniti.

In a separate transaction on February 2, the Bill Estes Chrysler Dodge Jeep Ram dealership in Brownsburg, Indiana, was sold to Matt Bowers Automotive Group. The dealership is set to be rebranded as Indy Chrysler Dodge Jeep Ram. The remaining three dealerships, located in Greenville, South Carolina, were sold to RBM of Atlanta on February 23, completing the ten-store divestiture.

This culling of assets is a clear execution of the 'portfolio optimization' strategy that Asbury's leadership has championed. By shedding these specific assets, the company can redirect financial and managerial resources to its remaining 161 dealerships and focus on markets and brands with higher growth potential or better profit margins.

Bolstering the Balance Sheet and Shareholder Value

The twin announcements of the asset sale and the expanded buyback plan signal a decisive financial maneuver by Asbury. The company is tackling its balance sheet and investor sentiment in one coordinated effort. A primary goal for the $210 million in proceeds is debt reduction. As of the end of 2025, Asbury’s transaction-adjusted net leverage ratio was 3.2x, just above its stated target range of 2.5x to 3.0x. This elevated leverage was influenced by the company's aggressive growth, most notably the landmark $1.76 billion acquisition of the 33-dealership Herb Chambers Companies in mid-2025.

By deploying the sale proceeds toward its debt, Asbury aims to bring its leverage ratio below 3.0x by the end of 2026, a move that would strengthen its financial standing and increase its flexibility for future strategic initiatives.

Simultaneously, the company made a powerful statement to its shareholders. The board of directors approved a $424 million increase to its share repurchase authorization. Combined with the $76 million remaining under the previous plan, Asbury now has a total of $500 million available to buy back its own stock. This move comes after the company has already spent $100 million to repurchase 441,000 shares year-to-date. The aggressive buyback signals management’s confidence in the company's stock, which had underperformed over the past year, and its long-term strategy.

“The increased share authorization emphasizes our commitment to our shareholders and gives us confidence in the execution of our strategy and the outlook for our business,” Hult added.

An Industry-Wide Trend of Consolidation

Asbury's strategic repositioning is not happening in a vacuum. It reflects a broader trend of consolidation and portfolio management among the nation's largest automotive retail groups. The dealership buy/sell market has remained active, with major players continuously acquiring stores to enter new markets or expand their brand portfolio while divesting non-core or underperforming assets.

Competitors like Lithia Motors, the nation's largest retailer by revenue, and Penske Automotive Group have been engaged in similar activities. In 2025, Lithia acquired 13 stores, adding an estimated $2.1 billion in revenue, while also selling four locations. Likewise, Penske has been strategically acquiring and divesting assets to optimize its global footprint. This industry-wide focus on efficiency and capital allocation comes as the market navigates post-pandemic realities, including stabilized new car inventories, persistent vehicle affordability challenges for consumers, and a slower-than-expected adoption of electric vehicles.

In this environment, profitability is increasingly tied to high-margin luxury brands and the consistent revenue stream from parts and service operations. By pruning its portfolio, Asbury can double down on its most profitable segments and strengthen its core business against market fluctuations.

Charting a Course to $30 Billion

This latest move is a key step in CEO David Hult's ambitious long-term vision for Asbury. Since embarking on a multi-year strategic plan in late 2020, the company has pursued growth through a combination of organic expansion, technological innovation, and major acquisitions, all guided by a “guest-centric approach.”

The ultimate goal is to reach at least $30 billion in annual revenue by approximately 2030. While selling off $610 million in annualized revenue may seem counterintuitive to that goal, the strategy is one of quality over quantity. The capital unlocked from these sales provides the dry powder for more strategic acquisitions, investments in technology like its Clicklane digital platform, or enhancements to its Total Care Auto service contract business.

By strengthening its balance sheet and demonstrating a commitment to shareholder value, Asbury is positioning itself for a more sustainable and profitable path toward its long-term revenue target, ensuring it has the financial muscle to seize opportunities in the dynamic automotive retail landscape.