Rush Enterprises Inc. announced that its subsidiary, Rush Truck Centers of Georgia Inc., has entered into agreements to purchase certain assets of Asbury Automotive Atlanta, a subsidiary of Asbury Automotive Group Inc. Asbury Atlanta operates commercial truck and bus dealerships representing International, Peterbilt, Isuzu, Hino, UD, IC Bus and Workhorse in Atlanta, Doraville and Kennesaw, Ga., and a collision center in Atlanta under the Nalley Motor Trucks name.
The proposed acquisition would expand the company’s contiguous network of Rush Truck Centers in the Southeast and would result in Rush operating 64 Rush Truck Center locations in 14 states. Rush anticipates that the purchase price for the assets of Asbury Atlanta will be paid in cash and partially financed under its floor plan and accounts receivable financing arrangements and the incurrence of long-term debt for the real estate; the company 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,” says W. M. “Rusty” Rush, president and chief executive officer of Rush Enterprises Inc. “We look forward to the opportunity to welcome the employees of Nalley Motor Trucks into the Rush organization.”
