Lithia & Driveway (LAD) Expand Footprint in Florida and Michigan, their two most important growth regions

Rhea-AI Summary

Lithia & Driveway (NYSE:LAD) has acquired three Ford stores from the Elder Auto Group, enhancing its presence in Florida and Michigan. The newly acquired stores, Elder Ford of Tampa, Troy, and Romeo, are projected to yield $425 million in annual revenue. This acquisition raises LAD's total expected annualized revenue in 2021 to nearly $7 billion. The company is on track to surpass its $50 billion revenue goal set in 2020, funded through on-balance sheet capacity, solidifying its strategy for growth through retail consolidation.

Positive

• Acquisition of three Ford stores expected to generate $425 million in annual revenue.
• Total expected annualized revenue for LAD in 2021 will reach nearly $7 billion.
• On track to exceed $50 billion revenue goal set in July 2020.

Negative

• None.

MEDFORD, Ore., Dec. 7, 2021 /PRNewswire/ -- Lithia & Driveway (NYSE:LAD) announced today the purchase of three Ford stores from the Elder Auto Group. Elder Ford of Tampa significantly increases LAD's domestic footprint in Florida, region 6 and Elder Ford of Troy and Elder Ford of Romeo add density to Michigan operations in region 3. Together these stores are expected to generate $425 million in annualized revenue.

As an organization, the Elder Auto Group has won numerous awards, including the 2020 Ford Motor Company's prestigious Presidents Award. "The Elder Auto Group has an impeccable reputation for quality customer service, a passion for all things Ford and will be a seamless fit," said Bryan DeBoer, Lithia & Driveways President and CEO. "We are excited to welcome Robert Elder and these strong, high-performing teams to the Lithia & Driveway family."

The addition of the Elder Ford stores brings LAD's total expected annualized revenue acquired in 2021 to nearly $7 billion. The company is pacing to exceed its 5-year plan, announced in July 2020, to reach $50 billion in revenue and $50 of earnings per share. These acquisitions were financed using existing on-balance sheet capacity. 

About Lithia & Driveway (LAD):  
LAD is a growth company powered by people and innovation with a plan to profitably consolidate the largest retail sector in North America. As the leading provider of personal transportation solutions in North America, LAD is among the fastest-growing companies in the Fortune 500 and is currently ranked #231 (#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, LAD builds 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. LAD continues to lead the industry's consolidation, and this combined with 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.lithiainvestorrelations.com 
www.lithia.com   
www.driveway.com  
www.lithiacareers.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    

 

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SOURCE Lithia Motors, Inc.

FAQ

What is the significance of Lithia & Driveway's acquisition of Elder Ford stores?

The acquisition expands LAD's footprint in Florida and Michigan, with an expected annual revenue of $425 million from the three stores.

How much annualized revenue is Lithia & Driveway expected to generate in 2021?

Lithia & Driveway is projected to generate nearly $7 billion in annualized revenue in 2021 after the acquisition.

What are the growth targets set by Lithia & Driveway for revenue?

LAD aims to exceed $50 billion in revenue, a goal announced in July 2020.

How will the Elder Ford acquisitions be financed?

The acquisitions will be financed through existing on-balance sheet capacity.