Lithia & Driveway to Form Strategic Partnership with Pinewood Technologies and Acquire Pendragon PLC's Fleet Management and UK Motor Divisions
- Expected annual revenues of over $4.5 billion USD
- Highly profitable fleet management services business
- Expansion of brand and geographic footprint
- None.
Transaction Overview
About the Transaction
Lithia and Pendragon have signed agreements to enter a strategic partnership with Pinewood Technologies and for Lithia to acquire Pendragon's
Investment in Innovation
- As part of the agreement, the ongoing Pendragon business, comprised of the Pinewood DMS platform, will remain listed on the London Stock Exchange under the name Pinewood Technologies plc ("Pinewood Technologies") and will become pure play software as a service (SaaS) business with its profitable Pinewood dealer management system
- Lithia's
UK operations will grow their digital capabilities by adopting the Pinewood technology platform across all locations - Additionally, Lithia and Pinewood Technologies, through a joint venture, will co-develop automotive technology solutions to capitalise on the North American market opportunity
- Lastly, Lithia will take a
16.7% ownership in the remaining Pinewood business at completion of the transaction
Diversification
- The acquisition of Pendragon Vehicle Management ("PVM") immediately adds a highly profitable fleet management services business to Lithia
- This business-to-business fleet management model will start the foundation for global growth in this adjacency
- PVM's experienced leadership team will continue leading the business with a focus on growth
Expansion
- The transaction underlines Lithia's plans to invest further in the evolving
UK automotive industry, delivering omni-channel and eCommerce optionality for customers to shop wherever, whenever, and however they desire - Pendragon's
UK motor and vehicle management divisions are highly complementary to Lithia's existingUK brand and geographic footprint following the investment in Jardine Motors Group ("JMG") in March 2023 with the combined platform representing3.6% new vehicle market share - Post-completion the combined business will report to Neil Williamson, Lithia's
UK President who has led the rapid and seamless integration of JMG since the investment in March 2023 and the addition of two BMW stores inMaidstone andTunbridge Wells in August 2023
Bryan DeBoer, Lithia & Driveway President and CEO, said:
"The strategic partnership with Pinewood Technologies and acquisition of Pendragon's
Bill Berman, Chief Executive of Pendragon PLC added:
"Pendragon has built one of the
The cash consideration for the strategic partnership with Pinewood Technologies and acquisition of the
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. Convenient and hassle-free experiences are offered through our comprehensive network of physical locations, ecommerce platforms, captive finance solutions and other synergistic adjacencies. We deliver consistent, low-risk, and profitable growth in a massive and unsolicited 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.
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SOURCE Lithia Motors, Inc.