Lithia Motors & Driveway (LAD) Adds $185 Million of Revenue

Rhea-AI Summary

Lithia Motors & Driveway (NYSE: LAD) announced the acquisition of BMW of Sherman Oaks and Acura of Sherman Oaks in Van Nuys, California, projected to generate $185 million in annualized revenues. This marks LAD's first BMW store in Southern California and aligns with its five-year plan targeting $50 billion in revenues. Since the plan's inception, LAD has acquired nearly $7.1 billion in annualized revenues, with a pipeline of over $15 billion. The transaction was financed through existing on-balance sheet capacity.

Positive

• Acquisition of BMW and Acura locations expected to generate $185 million in annualized revenue.
• Part of a strategic five-year plan aiming for $50 billion in revenues.
• Significant expansion into Southern California market.

Negative

• None.

MEDFORD, Ore., June 8, 2021 /PRNewswire/ -- Lithia Motors & Driveway (NYSE: LAD) announced today the acquisition of two locations in Van Nuys, California, serving the greater Los Angeles area. BMW of Sherman Oaks and Acura of Sherman Oaks are expected to generate combined annualized revenues of $185 million.

"We welcome the BMW of Sherman Oaks and Acura of Sherman Oaks teams to the LAD family," said Bryan DeBoer, Lithia & Driveway's President and CEO. "We are excited to add our first BMW store in Southern California and capture the significant potential that exists."

LAD has acquired nearly $7.1 billion in annualized revenues since the launch of its five-year plan to reach $50 billion in revenues and $50 in earnings per share just under a year ago. This growth has been focused primarily in the Southeast and Central regions where their network density is lightest. LAD has a robust pipeline of over $15 billion in annualized revenues in discussion and priced to meet their disciplined hurdle rates. "We are well ahead of schedule on the network development portion of our five-year plan. Our network is essential to conveniently and affordably meet the needs of our customers throughout their entire vehicle ownership lifecycle." This value-based transaction was financed using existing on-balance sheet capacity.

About Lithia Motors & Driveway:
Lithia Motors & Driveway is a growth company powered by people and innovation with a 5-year plan to profitably consolidate the largest retail sector in the country. They are a leading provider of personal transportation solutions in the United States and are among the fastest-growing companies in the Fortune 500 (#6 on 10-Year EPS Growth, #4 10-Year TSR in 2020). By providing a wide array of products throughout the entire lifecycle of the consumer's vehicle ownership experience 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 increase market share, consumer loyalty and team performance. Lithia's omni-channel strategy will continue to pragmatically disrupt the industry by leveraging experienced teams, vast owned inventories, technology, and physical network. By purchasing strong businesses, they further strengthen this network, leveraging their national digital home channel Driveway and building upon 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.

Company Websites 
www.lithiamotors.com 
www.lithiainvestorrelations.com 
www.lithiacareers.com 
www.driveway.com

Lithia Motors on Facebook 
https://www.facebook.com/LithiaMotors

Lithia Motors on Twitter 
https://twitter.com/lithiamotors

 

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SOURCE Lithia Motors, Inc.

FAQ

What acquisition did Lithia Motors & Driveway announce on June 8, 2021?

Lithia Motors & Driveway announced the acquisition of BMW of Sherman Oaks and Acura of Sherman Oaks.

How much annualized revenue is expected from the newly acquired locations by Lithia Motors?

The combined annualized revenue expected from the acquired locations is $185 million.

What is Lithia Motors' five-year revenue goal?

Lithia Motors aims to reach $50 billion in revenues as part of its five-year plan.

How much revenue has Lithia Motors acquired since launching its five-year plan?

Since launching its five-year plan, Lithia Motors has acquired nearly $7.1 billion in annualized revenues.

What is the significance of the new BMW store for Lithia Motors?

The new BMW store in Southern California is significant as it marks Lithia's first BMW dealership in that region.