LITHIA & DRIVEWAY EXPANDS RETAIL NETWORK IN US SOUTHEAST REGION

Rhea-AI Summary

Lithia & Driveway (NYSE: LAD) has expanded its retail network in the U.S. Southeast Region with the acquisition of Sunrise Chevrolet Buick GMC at Collierville, Sunrise Buick GMC at Wolfchase in Memphis, Tennessee, and Woodbridge Hyundai in the greater Toronto area. These acquisitions are expected to generate over $240 million in annualized revenue. This move marks LAD's entry into the Memphis market, which is noted as the most profitable region in the U.S.

The Woodbridge Hyundai store will eventually be relocated to an existing owned facility, enhancing returns. The acquisitions contribute to LAD's year-to-date expected annualized revenue of over $5.6 billion. The company financed these purchases using its existing on-balance sheet capacity.

LAD aims to leverage the goodwill of these dealerships to continue delivering an exceptional retail experience.

Positive

• Expansion into the profitable Memphis market with new acquisitions.
• Projected annualized revenue from new stores exceeds $240 million.
• Year-to-date expected annualized revenue acquired exceeds $5.6 billion.
• Woodbridge Hyundai recognized as a 'Best Dealership to Work for' the past five years.
• Financing for acquisitions was done using existing on-balance sheet capacity, indicating strong financial health.

Negative

• No specific financial details on the cost of acquisitions disclosed, which might concern some investors.
• The integration of new stores can pose operational challenges and potential risks.

News Market Reaction

-1.81%

1 alert

-1.81% News Effect

On the day this news was published, LAD declined 1.81%, reflecting a mild negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

MEDFORD, Ore., June 11, 2024 /PRNewswire/ -- Lithia & Driveway (NYSE: LAD) announced today it has expanded its footprint in the U.S. Southeast Region with the purchase of Sunrise Chevrolet Buick GMC at Collierville and Sunrise Buick GMC at Wolfchase in Memphis, Tennessee, and Woodbridge Hyundai in the greater Toronto area. Combined, these newly acquired stores are projected to generate over $240 million in annualized revenue.  

The dominant Sunrise stores in Tennessee mark LAD's debut in the Memphis market, further expanding its presence in the country's most profitable region. The Woodbridge Hyundai location will eventually occupy an existing owned facility, allowing for strong returns. 

"We are excited to arrive in Memphis and build upon Sunrise's goodwill within the community, and to add Woodbridge Hyundai, which has been honored as a "Best Dealership to Work for" by Automotive News for the past five years," said Bryan DeBoer, Lithia & Driveway President and CEO. "We offer an exceptional retail experience rooted in ease, convenience, and optionality throughout the entire vehicle-ownership lifecycle, and we know these impressive teams will help us meet consumers wherever, whenever, and however they desire." 

These additions bring LAD's total year-to-date expected annualized revenue acquired to over $5.6 billion. The acquisitions were financed using existing on-balance sheet capacity.  

About Lithia & Driveway (LAD)
Lithia & Driveway (NYSE: LAD) is one of the largest global automotive retailers providing a wide array of products and services throughout the vehicle ownership lifecycle. Simple, convenient, and transparent experiences are offered through our comprehensive network of physical locations, e-commerce platforms, captive finance solutions and other synergistic adjacencies. We deliver consistent, profitable growth in a massive and unconsolidated industry. Our highly diversified and competitively differentiated design provides us the flexibility and scale to pursue our vision to modernize personal transportation solutions wherever, whenever and however consumers desire. 

SITES 

www.lithia.com 
www.investors.lithiadriveway.com 
www.lithiacareers.com 
www.driveway.com 
www.greencars.com 
www.drivewayfinancecorp.com 

Lithia & Driveway on Facebook 
https://www.facebook.com/LithiaMotors 
https://www.facebook.com/DrivewayHQ 

Lithia & Driveway on Twitter 
https://twitter.com/lithiamotors 
https://twitter.com/DrivewayHQ 
https://twitter.com/GreenCarsHQ 

 

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SOURCE Lithia Motors, Inc.

FAQ

What is the impact of LAD's recent acquisitions on its annual revenue?

The recent acquisitions are expected to generate over $240 million in annualized revenue.

Which new stores did Lithia & Driveway acquire?

Lithia & Driveway acquired Sunrise Chevrolet Buick GMC at Collierville, Sunrise Buick GMC at Wolfchase in Memphis, Tennessee, and Woodbridge Hyundai in the greater Toronto area.

What is the significance of the Memphis market for LAD?

The Memphis market is noted as the most profitable region in the U.S., marking a strategic entry for LAD.

How will the new acquisitions affect LAD's total expected annualized revenue for the year?

The acquisitions bring LAD's total year-to-date expected annualized revenue acquired to over $5.6 billion.

How did Lithia & Driveway finance the recent acquisitions?

The acquisitions were financed using existing on-balance sheet capacity.