Lithia Acquires $600 Million in Revenue Adding to Its Rapidly Growing Network
September 01 2020 - 09:00AM
Business Wire
Lithia Motors, Inc. (NYSE: LAD) announced today the purchase of
the remaining six John Eagle Dealerships located in Houston,
Texas.
The Houston locations are in addition to the John Eagle
Dallas/Austin purchase on August 3, 2020. Combined, these ten Texas
dealerships add $1.1 billion in annualized revenues and bring
Lithia's network expansion to over $1.6 billion in revenue thus far
in 2020.
“The John Eagle acquisitions improve Lithia’s density in the
South-Central region and expands our network with a dominant
presence in 4 of the top 5 largest metropolitan markets in the
United States,” said Bryan DeBoer, Lithia Motors President and CEO.
Lithia Motors financed these acquisitions using free cash flows and
existing on-balance sheet capacity.
“The growth of our physical network expands our ability to
provide consumers convenient and affordable new vehicle, used
vehicle, service and parts solutions and brand impressions.
Together, with our Driveway digital home channel, we are providing
personal transportation solutions wherever, whenever and however
consumers desire,” stated DeBoer.
These import franchises complement Lithia’s domestic footprint
in Texas to provide a wide range of vehicles to consumers
throughout the South-Central region. Lithia has the broadest
coast-to-coast automotive retail network, reaching 92% of the
United States.
About Lithia
Lithia Motors, Inc. is a growth company powered by people and
innovation with a 5-year plan to profitably consolidate the largest
retail sector in our country. They are a leading provider of
personal transportation solutions in the United States and are
among the fastest-growing companies in the Fortune 500 (#6 on
10-Year EPS Growth, #4 10-Year TSR in 2020). By providing a wide
array of products throughout the entire lifecycle of the consumer’s
vehicle ownership experience, they build magnetic brand loyalty.
Operational excellence is achieved by focusing the business on
convenient and transparent consumer experiences supported by
proprietary data science to increase market share, consumer loyalty
and team performance. Lithia's omni-channel strategy will continue
to pragmatically disrupt the industry by leveraging experienced
teams, massive owned inventories, technology and physical network.
By purchasing strong businesses, they further strengthen this
network, leveraging their national digital home channel Driveway
and building upon their massive regenerating capital engine.
Together, these endeavors create a unique and compelling high
growth strategy that provides transportation solutions wherever,
whenever and however consumers desire.
Sites www.lithiamotors.com
www.lithiainvestorrelations.com www.lithiacareers.com
Lithia Motors on Facebook
http://www.facebook.com/LithiaMotors
Lithia Motors on Twitter
http://twitter.com/lithiamotors
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version on businesswire.com: https://www.businesswire.com/news/home/20200901005399/en/
Eric Pitt VP, Investor Relations and Treasurer EPitt@lithia.com
(541) 864-1748
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