Asbury Automotive Group Acquires Herb Chambers Companies in $1.34 Billion Deal
In a significant move that reshapes the New England automotive retail landscape, Asbury Automotive Group has acquired Herb Chambers Companies for $1.34 billion, marking one of the largest dealership acquisitions in recent history.
Deal Structure and Assets
The acquisition encompasses 33 dealerships, 52 franchises, and 3 collision centers across Massachusetts and Rhode Island. The financial structure of the deal breaks down into:
- $750 million for the Chambers brand value
- $590 million for real estate holdings
- Additional undisclosed amount for inventory, including vehicles, parts, and supplies
Notably, Herb Chambers will retain ownership of Mercedes-Benz of Boston in Somerville, though Asbury has secured the right of first refusal for any future sale of this dealership. Recently, Chambers also transferred ownership of a Honda dealership to his son, George Chambers.
Herb Chambers Companies’ Market Position
Prior to the acquisition, Herb Chambers Companies stood as one of New England’s largest automotive dealer groups, generating approximately $2.9 billion in revenue in 2024. The company employed over 2,200 people across its Massachusetts and Rhode Island locations, establishing itself as a significant regional employer.
Leadership Transition and Future Operations
Herb Chambers will continue his involvement with the business as a special advisor, ensuring a smooth transition. The deal represents the culmination of Chambers’ 40-year journey in the automotive retail industry, with both parties emphasizing their shared customer-centric philosophy.
Chambers expressed pride in his company’s achievements, stating his confidence that the business will continue to thrive under Asbury’s stewardship. Employees are expected to benefit from Asbury’s comprehensive benefits package, and customers should experience minimal disruption in service.
Asbury’s Enhanced Market Presence
Post-acquisition, Asbury Automotive Group’s portfolio now includes:
- 152 new vehicle dealerships
- 198 franchises
- Representation of 31 automotive brands
This expansion significantly strengthens Asbury’s presence in the Northeast market.
Industry Context and Trends
The acquisition occurs against a backdrop of increasing consolidation in the automotive retail industry. Several factors are driving this trend:
- The gradual transition to electric vehicles, which impacts traditional profit models due to reduced maintenance requirements
- Although the EV transition may slow, industry experts agree it’s irreversible
- Long-standing rumors of potential sales in the industry, which have now materialized in this case
Herb Chambers’ Legacy
The deal marks a significant milestone in Chambers’ remarkable career journey:
- From his roots in Dorchester and service in the U.S. Navy
- Early success in the copier business, which he sold for over $80 million
- Entry into auto retail with a Cadillac-Oldsmobile dealership purchase in 1985
- Building one of New England’s most successful automotive retail groups
Outstanding Matters
A pending legal matter regarding back wages for auto parts workers remains unresolved. Legal representatives have expressed hope that this matter will be settled following the acquisition’s completion.
Market Implications
This acquisition represents more than just a change in ownership; it signals the continuing evolution of the automotive retail industry. As traditional dealership models face disruption from electric vehicles and changing consumer preferences, consolidation offers advantages of scale and operational efficiency.
The deal’s success will likely be measured by:
- Retention of the existing customer base
- Employee satisfaction and retention
- Successful integration of operations
- Maintenance of the strong brand reputation built by Chambers
For both organizations, this transaction presents opportunities to leverage their combined strengths while navigating the challenges of an evolving automotive retail landscape.
