LAD and Sidney DeBoer Complete B-Share Stock Conversion Nearly Five Years Ahead of Schedule

Rhea-AI Summary

Lithia Motors & Driveway (NYSE: LAD) has accelerated the conversion of its Class B common stock into Class A shares, completing the process five years earlier than scheduled, effective February 23, 2021. This shift eliminates the dual-class structure, offering equal economic value and voting power to all outstanding shares. This decision, credited to founder Sidney DeBoer, reaffirms the company's commitment to high performance and strong corporate governance.

Positive

• Accelerated conversion of Class B shares to Class A completed five years ahead of schedule.
• Elimination of dual-class structure allows equal voting power and economic value for all shareholders.

Negative

• None.

Lithia Motors & Driveway (NYSE: LAD) today announced that nearly five years ahead of schedule, LAD and Sidney DeBoer have completed the conversion of Lithia’s Class B common stock into Class A common stock effective February 23, 2021. As a result, Lithia Motors & Driveway no longer have a dual-class structure and all outstanding shares have the same economic value and voting power.

“We are gracious that our founder and Chairman of the Board, Sidney DeBoer, significantly accelerated the timeline for converting the remaining Class B shares, previously scheduled to sunset at the end of 2025,” said Bryan DeBoer, Lithia Motors & Driveway’s President & CEO. “This acceleration further demonstrates our steadfast commitment to a culture of high performance while maintaining a strong corporate governance profile.”

About Lithia Motors & Driveway:

Lithia Motors & Driveway is a growth company powered by people and innovation with a 5-year plan to profitably consolidate the largest retail sector in the 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 through various consumer channels, 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, vast 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 the 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.

Company Websites
www.lithiamotors.com
www.lithiainvestorrelations.com
www.lithiacareers.com
www.driveway.com

Lithia Motors on Facebook
http://www.facebook.com/LithiaMotors

Lithia Motors on Twitter
http://twitter.com/lithiamotors

View source version on businesswire.com: https://www.businesswire.com/news/home/20210223005898/en/

FAQ

What is the recent stock conversion announcement by Lithia Motors (LAD)?

Lithia Motors announced the completion of the conversion of its Class B common stock into Class A shares, effective February 23, 2021.

Why did Lithia Motors convert its Class B stock to Class A?

The conversion aims to eliminate the dual-class structure, providing equal economic value and voting power to all shares.

Who is responsible for the accelerated stock conversion at Lithia Motors?

The accelerated conversion was credited to founder and Chairman, Sidney DeBoer.

When did the stock conversion of Lithia Motors (LAD) take effect?

The stock conversion took effect on February 23, 2021.