Lithia & Driveway (LAD) Acquires Toyota of Jackson; Expands Network into Mississippi

Rhea-AI Summary

Lithia & Driveway (NYSE: LAD) has acquired Toyota of Jackson in Mississippi, marking its first dealership in the state. This acquisition aligns with LAD's five-year plan to achieve $50 billion in revenue and $50 earnings per share. The new location is projected to generate $95 million in annualized revenue, contributing to a total of $7.6 billion from acquisitions since July 2020. The deal was financed through existing resources, enhancing the company’s Southeast regional footprint.

Positive

• Acquisition of Toyota of Jackson expected to generate $95 million in annualized revenue.
• Total expected annualized revenue from acquisitions reaches $7.6 billion since July 2020.
• Strategic expansion into Mississippi enhances LAD's presence in the Southeast region.

Negative

• None.

MEDFORD, Ore., June 22, 2021 /PRNewswire/ -- Lithia & Driveway (NYSE: LAD) today announced it has acquired Toyota of Jackson in Jackson, Mississippi. This location adds to LAD's growing Southeast region and is the first in the state of Mississippi. 

"We are excited to complete our first year of the five-year plan to reach $50 billion in revenue and $50 of earnings per share well beyond expectations," said Bryan DeBoer, President and CEO. "Our growing presence in the Southeast region strategically enhances our nationwide network that is foundational to Lithia and Driveway conveniently serving customers throughout the entire vehicle ownership lifecycle."  

This location is expected to add $95 million in annualized revenue and brings LAD's total expected annualized revenue acquired to $7.6 billion since the launch of its 5-year plan in July 2020. "We welcome one of the strongest new vehicle businesses in Mississippi and the team to the LAD family," said DeBoer. This transaction was financed using existing on-balance sheet capacity. 

About Lithia & Driveway (LAD)
LAD is a growth company powered by people and innovation with a 5-year plan to profitably consolidate the largest retail sector in the country. As the leading provider of personal transportation solutions in the United States, LAD is among the fastest-growing companies in the Fortune 500 (#2 on 10-Year EPS Growth, #3 on 10-Year TSR and #12 on 10-year Revenue growth in 2021). By providing a wide array of products and services for the entire vehicle ownership lifecycle 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 improve market share, consumer loyalty and profitability. LAD's omni-channel strategy will continue to pragmatically disrupt the industry by leveraging experienced teams, vast owned inventories, technology, and physical network. Continuing to lead the industry's consolidation and Driveway's e-commerce in-home experiences further accelerates 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.  

Sites: 
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 

 

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SOURCE Lithia Motors, Inc.

FAQ

What is the significance of Lithia & Driveway's acquisition of Toyota of Jackson?

The acquisition expands LAD's footprint into Mississippi and contributes $95 million in expected annualized revenue, aligning with its five-year growth strategy.

How much annualized revenue has Lithia & Driveway generated from acquisitions since 2020?

Since July 2020, LAD has generated a total of $7.6 billion in expected annualized revenue from acquisitions.

What is Lithia & Driveway's revenue target for their five-year plan?

Lithia & Driveway aims for $50 billion in revenue and $50 in earnings per share as part of their five-year growth plan.

How was the acquisition of Toyota of Jackson financed?

The acquisition was financed using Lithia & Driveway's existing on-balance sheet capacity.