Herb Chambers of New England Auto King Sells Dealership Group for $1.4 Billion | Carscoops

      Asbury Automotive Group is acquiring the Chambers brand for $750 million and the real estate for $590 million.

      The transaction includes 33 dealerships, 52 franchises, and three collision centers located in two states.

      Herb Chambers has a workforce of over 2,200 employees within his extensive dealership network.

      The valuation of current inventory, parts, and supplies will be assessed at a later date.

      A substantial group of auto dealerships throughout Massachusetts and Rhode Island has been sold in a significant transaction totaling $1.34 billion. This week, Asbury Automotive Group announced its intention to acquire numerous dealerships owned by The Herb Chambers Companies in the region, marking a transition as one of Boston’s most recognized business figures steps back from his self-named enterprise.

      For forty years, Herb Chambers has been a key figure in the automotive industry throughout New England. His business ranks among the largest privately owned auto dealership groups in the United States and currently employs over 2,200 individuals. Through this agreement with the publicly listed Asbury Automotive Group, Chambers will divest 33 dealerships, 52 franchises, and three collision centers.

      Asbury is financing the acquisition through cash, mortgage proceeds, and available credit. The agreement includes $750 million for the Chambers brand’s value and $590 million for the real estate. Once the deal concludes in the summer, Asbury will also pay an undisclosed amount for other essential assets of the dealership group, encompassing parts, supplies, and its large vehicle inventory.

      Chambers’ vast automotive enterprise recorded $2.9 billion in revenue last year. He will maintain ownership of a single Mercedes-Benz dealership in Somerville. Following the finalization of the agreement with Asbury, Chambers will take on the role of Special Adviser.

      In an interview with the Boston Globe, Chambers revealed that Asbury initially approached him regarding a potential sale a year prior.

      “As I reflect on the past 40 years in business, I do so with immense pride, and as I look ahead, I do so with great satisfaction knowing what we've built together will be in trustworthy hands,” he stated following the announcement of the deal. “David Hult and the Asbury Automotive Group share our customer-focused philosophy, which will continue to be the foundation for moving our great company forward.”