Lithia Motors Accelerates Southeast Growth: Acquisitions To Generate Over $240M Annually

Lithia Motors, Inc. LAD shares are trading lower today. The company revealed its expansion in the U.S. Southeast Region through the purchase of stores that are expected to generate over $240 million in annualized revenue.

In particular, the company purchased Sunrise Chevrolet Buick GMC in Collierville and Sunrise Buick GMC in Wolfchase, both in Memphis, Tennessee, and Woodbridge Hyundai in Greater Toronto.

The prominent Sunrise stores in Tennessee represent Lithia Motors’ entrance into the Memphis market, enhancing its footprint in the nation’s most lucrative region.

Additionally, the Woodbridge Hyundai site will utilize an existing owned facility, paving the way for solid returns.

With these additions, the company’s total year-to-date expected annualized revenue from acquisitions surpasses $5.6 billion. The company financed these acquisitions through existing on-balance sheet capacity.

Recently, Lithia & Driveway unveiled a $350 million augmentation to its share repurchase authorization sanctioned by its Board of Directors, which raises the total funds allocated for future repurchases to about $660 million.

Investors can gain exposure to the stock via Invesco S&P Midcap 400 Pure Value ETF RFV and Invesco S&P MidCap Value With Momentum ETF XMVM.

Price Action: LAD shares are down 1.15% at $256.885 at the last check Tuesday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.