Auto retailer Asbury Automotive Group said on Tuesday it would acquire automotive dealerships owned by Herb Chambers Companies in a deal valued at $1.34 billion.

Asbury plans to fund the acquisition using a combination of credit facility capacity, mortgage proceeds and cash, the company added.

The deal, which includes Herb Chambers' 33 dealerships, 52 franchises and three collision centers, hopes to capitalize on stronger demand from consumers opting for modern feature-packed vehicles and after-sales services.

Duluth, Georgia-based Asbury operates more than 155 dealerships in more than a dozen states, dealing with new and used vehicles among other services.

Herb employs more than 2,200 people in locations throughout Massachusetts and Rhode Island, and sells new and used vehicles ranging from affordable mopeds all the way up to luxury cars.

Herb said it will assume the post of Special Advisor to Asbury and will retain ownership of its Mercedes-Benz of Boston dealership in Somerville, Massachusetts.

The transaction is expected to close late in the second quarter of 2025, pending customary closing conditions.