Lithia & Driveway (LAD) Acquires First Ferrari Store, Representing the Rocky Mountain Region

Rhea-AI Summary

Lithia & Driveway (NYSE: LAD) has expanded its footprint into Colorado by acquiring Ferrari of Denver, the company's first Ferrari store. This location aims to enhance customer experiences and is the only Ferrari dealership in the greater Rocky Mountains region. The acquisition is expected to generate $75 million in annualized revenue, contributing to LAD's goal of $50 billion in revenue by 2025. The acquisition aligns with LAD's strategy to grow its luxury vehicle offerings and customer loyalty.

Positive

• Acquisition of Ferrari of Denver expected to generate $75 million in annualized revenue.
• Expansion aligns with the company's 2025 Plan to reach $50 billion in revenue.
• Increased market presence in luxury vehicle sector with the only Ferrari store in the Rocky Mountains.

Negative

• None.

MEDFORD, Ore., Dec. 6, 2022 /PRNewswire/ -- Lithia & Driveway (NYSE: LAD) announced today they have expanded into Colorado, purchasing Ferrari of Denver, the Company's first Ferrari store.

Ferrari of Denver will specialize in personalized, in-home customer experiences covering the full ownership lifecycle. The only Ferrari location in the greater Rocky Mountains region, this store boasts three Ferrari-certified technicians and a Bentley master-certified technician. In addition to Ferrari, this store also sells Bentley and other luxury brands.

"We're thrilled to welcome this Denver team into the Lithia & Driveway family," said Bryan DeBoer, President and CEO. "We are ready to expand our business through greater convenience and optionality to cultivate customer loyalty. Ferrari of Denver will fuel our drive to Earn Customers for Life, while becoming a centrally located hub for premium luxury vehicles in the country."

Located in Highlands Ranch, CO, this acquisition is projected to generate $75 million in annualized revenue bringing LAD's total expected annualized revenue acquired in 2022 to over $3.3 billion. Acquisitions are a key part of the company's 2025 Plan to reach $50 billion in revenue and $55 to $60 in earnings per share.

About Lithia & Driveway (LAD):

LAD is a growth company focused on profitably consolidating the largest retail sector in North America through providing 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 significance of Lithia & Driveway's acquisition of Ferrari of Denver?

The acquisition allows Lithia & Driveway to expand its luxury vehicle offerings and is expected to generate $75 million in annualized revenue, enhancing its market position in the Rocky Mountains.

How much annualized revenue does the acquisition of Ferrari of Denver contribute to Lithia & Driveway?

The acquisition of Ferrari of Denver is projected to contribute $75 million in annualized revenue.

What are Lithia & Driveway's future revenue goals following this acquisition?

Lithia & Driveway aims to reach $50 billion in revenue by 2025 as part of its strategic growth plan.

Where is Ferrari of Denver located?

Ferrari of Denver is located in Highlands Ranch, Colorado.

What types of vehicles will Ferrari of Denver sell?

Ferrari of Denver will specialize in Ferrari vehicles, as well as Bentley and other luxury brands.