Asbury Automotive Group has terminated its $1 billion purchase of most of the luxury Park Place Dealerships in Texas days before the deal was scheduled to close.
Asbury, in a regulatory filing, said it notified the sellers Tuesday that it was ending its transaction agreements and would pay $10 million in damages. It did not specifically give a reason for the termination but said in the filing that it has borrowed $237 million from a revolving credit line and $110 million from its used-vehicle floorplan loan.
“The company increased its borrowing as a precautionary measure in order to increase its cash position and preserve financial flexibility in light of current uncertainty in the global markets resulting from the COVID-19 outbreak,” Asbury said in the filing.
The Asbury-Park Place deal was expected to be one of the largest buy-sell deals in at least a decade. Asbury announced in December that it would buy 10 luxury Park Place stores in Texas with 17 new-vehicle franchises in the…