Rush Enterprises, Inc. (NASDAQ: RUSHA and RUSHB), which states it operates the largest network of commercial vehicle dealerships in North America, announced today that its subsidiary Rush Truck Centers of Georgia, Inc. has entered into agreements to purchase certain assets of Asbury Automotive Atlanta, LLC, a subsidiary of Asbury Automotive Group, Inc. (NYSE®: ABG). Asbury operates commercial truck and bus dealerships representing International, Peterbilt, Isuzu, Hino, UD, IC Bus, and Workhorse in Atlanta, Doraville and Kennesaw, GA as well as a collision center in Atlanta under the “Nalley Motor Trucks” name.
Rush said the proposed acquisition would expand its contiguous network of Rush Truck Centers in the southeast and would result in the company operating 64 Rush Truck Center locations in 14 states.
The company said it anticipates that the purchase price for the assets of Asbury will be paid in cash and partially financed under Rush’s floor plan and accounts receivable financing arrangements and the incurrence of long-term debt for the real estate.
Rush noted it “expects the transaction to be accretive to future earnings.” The completion of the acquisition is subject to several closing conditions, including the approval of the manufacturers currently represented by Nalley Motor Trucks, and is expected to close in the first quarter of 2011.
“The proposed acquisition is a tremendous opportunity for Rush to support customers in the Atlanta market with well-respected heavy- and medium-duty truck and bus brands,” said W. M. “Rusty” Rush, president &CEO of Rush Enterprises, Inc. “We look forward to the opportunity to welcome the employees of Nalley Motor Trucks into the Rush organization.”
