Lithia Motors & Driveway (LAD) Adds $75 Million of Revenue in Southwest Region

Rhea-AI Summary

Lithia Motors & Driveway (NYSE: LAD) has announced the acquisition of Avondale Nissan in Phoenix, Arizona, enhancing its market presence in the Southwest. This acquisition contributes to LAD's total annualized revenues exceeding $4.75 billion within nine months of its five-year strategic plan. The company is ahead of its target to acquire $4 billion in annualized revenues annually, aiming for a total of $50 billion in revenue and earnings per share of $50. The acquisition is financed through equity and debt offerings from the previous year.

Positive

• Acquisition of Avondale Nissan strengthens market position in Phoenix.
• Annualized revenues acquired now exceed $4.75 billion since the five-year plan launch.
• On track to exceed $4 billion in annualized revenue acquisitions.

Negative

• None.

MEDFORD, Ore., March 30, 2021 /PRNewswire/ -- Lithia Motors & Driveway (NYSE: LAD) announced it has acquired Avondale Nissan located in Phoenix, Arizona. This purchase further increases the offerings of Lithia Motors & Driveway in the second largest metropolitan market in the Southwest Region.

Lithia Motors & Driveway (NYSE: LAD) announced it has acquired Avondale Nissan located in Phoenix, Arizona.

"We are excited to welcome the high-performing Avondale Nissan team to the Lithia Motors & Driveway family," said Bryan DeBoer, President and CEO. "Their dedication to earning customers for life while making a positive impact in their local community, exemplifies our core values."

This purchase brings LAD's total annualized revenues acquired to over $4.75 billion since the launch of its five-year plan nine months ago. "The pipeline of acquisition targets that meet our hurdle rates is the most active we have ever seen," said DeBoer. "We are ahead of our target of acquiring $4 billion in annualized revenues each year and are well on our way to reaching our plan of $50 billion in revenue and $50 earnings per share." This transaction was financed using the capital raised in concurrent equity and debt offerings late last year.

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
http://www.facebook.com/LithiaMotors

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

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SOURCE Lithia Motors, Inc.

FAQ

What recent acquisition did Lithia Motors & Driveway (LAD) make?

Lithia Motors & Driveway (LAD) recently acquired Avondale Nissan located in Phoenix, Arizona.

How will the acquisition of Avondale Nissan affect LAD's revenues?

The acquisition contributes to LAD's total annualized revenues exceeding $4.75 billion.

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

LAD aims for a total revenue of $50 billion and earnings per share of $50 through their five-year plan.

How was the acquisition of Avondale Nissan financed?

The acquisition was financed through capital raised in concurrent equity and debt offerings from last year.