Lithia & Driveway (LAD) Expands Footprint in the Mid-Atlantic Region
Lithia & Driveway (LAD) has announced the acquisition of Stohlman Subaru in Sterling, Virginia, expanding its presence in the Mid-Atlantic Region. The acquisition is expected to generate $80 million in annualized revenue and was financed using existing on-balance sheet capacity.
Additionally, since the end of the third quarter, LAD has deployed $107 million to repurchase shares at an average price of $372. The company still has approximately $454 million available under its current share repurchase authorization.
Lithia & Driveway (LAD) ha annunciato l'acquisizione di Stohlman Subaru a Sterling, Virginia, espandendo la propria presenza nella regione del Mid-Atlantic. Si prevede che l'acquisizione generi $80 milioni di entrate annualizzate ed è stata finanziata utilizzando le capacità di bilancio esistenti.
Inoltre, dalla fine del terzo trimestre, LAD ha investito $107 milioni per riacquistare azioni a un prezzo medio di $372. L'azienda ha ancora circa $454 milioni disponibili sotto la sua attuale autorizzazione per il riacquisto di azioni.
Lithia & Driveway (LAD) ha anunciado la adquisición de Stohlman Subaru en Sterling, Virginia, ampliando su presencia en la región del Mid-Atlantic. Se espera que la adquisición genere $80 millones en ingresos anuales y se financió utilizando la capacidad existente en el balance.
Además, desde el final del tercer trimestre, LAD ha desplegado $107 millones para recomprar acciones a un precio promedio de $372. La compañía aún tiene aproximadamente $454 millones disponibles bajo su autorización actual de recompra de acciones.
리시아 & 드라이브웨이 (LAD)는 미드 애틀랜틱 지역에서의 존재감을 확장하기 위해 버지니아주 스털링에 있는 스톨만 수바루를 인수했다고 발표했습니다. 이 인수는 연간 수익 $8000만을 창출할 것으로 예상되며 기존의 재무 집행 능력을 활용하여 자금을 조달했습니다.
또한, LAD는 3분기 말 이후 $1억 700만를 주식 재매입에 사용했으며, 평균 주가는 $372입니다. 회사는 현재 주식 재매입 승인 하에 약 $4억 5400만가량을 보유하고 있습니다.
Lithia & Driveway (LAD) a annoncé l'acquisition de Stohlman Subaru à Sterling, en Virginie, étendant sa présence dans la région du Mid-Atlantic. L'acquisition devrait générer 80 millions de dollars de revenus annuels et a été financée en utilisant la capacité déjà présente dans le bilan.
De plus, depuis la fin du troisième trimestre, LAD a investi 107 millions de dollars pour racheter des actions à un prix moyen de 372 dollars. La société dispose encore d'environ 454 millions de dollars disponibles dans le cadre de son autorisation actuelle de rachat d'actions.
Lithia & Driveway (LAD) hat die Übernahme von Stohlman Subaru in Sterling, Virginia, bekannt gegeben und damit seine Präsenz in der Mid-Atlantic-Region erweitert. Es wird erwartet, dass die Übernahme 80 Millionen Dollar an jährlichen Einnahmen generiert und wurde mit bestehenden Bilanzkapazitäten finanziert.
Außerdem hat LAD seit Ende des dritten Quartals 107 Millionen Dollar in den Rückkauf von Aktien zu einem Durchschnittspreis von 372 Dollar investiert. Das Unternehmen hat noch etwa 454 Millionen Dollar unter seiner aktuellen Rückkaufgenehmigung zur Verfügung.
- Acquisition adds $80 million in expected annualized revenue
- Strategic expansion in the strong performing Mid-Atlantic Region
- Active share repurchase program with $107 million already deployed
- Substantial remaining buyback capacity of $454 million
- None.
Insights
The acquisition of Stohlman Subaru marks a strategic move that strengthens LAD's Mid-Atlantic presence while demonstrating efficient capital deployment. The
The timing and location of this acquisition are particularly noteworthy. The Mid-Atlantic region has shown robust performance in automotive retail, characterized by higher-than-average household incomes and strong vehicle demand. Sterling, Virginia's proximity to the Washington D.C. metropolitan area positions the dealership in a prime market with stable employment and consistent consumer spending.
Equally significant is LAD's parallel capital allocation strategy, having deployed
The dual approach of strategic acquisitions and share repurchases highlights LAD's sophisticated capital allocation strategy. The company is effectively balancing growth investments with shareholder returns, maintaining operational expansion while supporting stock value. This balanced approach, combined with the company's focus on high-performing markets, positions LAD well for continued market share gains and potential margin expansion in the competitive automotive retail landscape.
The Stohlman Subaru acquisition strategically aligns with several key market dynamics. The Mid-Atlantic region, particularly the Northern Virginia area, boasts one of the highest median household incomes in the nation, creating an ideal market for Subaru's premium positioning. This demographic alignment is important as Subaru maintains strong brand loyalty and commands higher-than-average profit margins in the region.
The Sterling, Virginia location is particularly valuable given its position in the Dulles Technology Corridor, home to a concentration of well-compensated technology professionals who align with Subaru's target demographic. The area's weather patterns, with four distinct seasons including significant snowfall, perfectly suits Subaru's all-wheel-drive vehicle lineup, potentially driving higher-margin sales and service revenue.
This acquisition also demonstrates LAD's strategic focus on markets with strong fundamentals and growth potential. The Washington D.C. metropolitan area's robust job market, stable government presence and growing technology sector provide a solid foundation for automotive retail operations. The deal strengthens LAD's competitive position against other major automotive retailers in the region while expanding its omnichannel capabilities in a key market.
"We are thrilled to welcome the talented Stohlman Subaru team to the Lithia & Driveway family. This acquisition strengthens our presence in the dynamic Mid-Atlantic market and reflects our continued focus on creating seamless experiences across our omnichannel platform. We look forward to creating customer loyalty and continuing to unlock the potential of the LAD platform alongside the Stohlman team," said Bryan DeBoer, Lithia & Driveway President and CEO."
This acquisition adds expected annualized revenue of
Update on Capital Allocation
Since the end of the third quarter, LAD has also deployed
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 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
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www.lithiacareers.com
www.driveway.com
www.greencars.com
www.drivewayfinancecorp.com
Lithia & Driveway on Facebook
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SOURCE Lithia Motors, Inc.
FAQ
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