Lithia Motors Buys 13 Locations, Adding Annualized Revenue Of $1.2B

Lithia Motors Inc LAD disclosed acquiring 13 locations from the Priority Automotive Group in Virginia to expand its footprint in the Mid-Atlantic Region. 

The acquired stores are projected to generate annualized revenue of over $1.2 billion. The financial terms were not disclosed.

The addition of these stores totaled LAD's year-to-date expected annualized revenue acquired to more than $3.2 billion. 

"We're thrilled to partner with Dennis Ellmer and his high performing Priority teams to expand our domestic operations and consumer options wherever, whenever, and however they desire. These stores not only expand our ability to cultivate long-term customer relationships in this region, but we also benefit from their impressive track-record of customer retention and commitment to community involvement," said Bryan DeBoer, Lithia & Driveway President and CEO. 

In April, LAD reported first-quarter FY23 sales growth of 4% year-on-year to $6.97 billion, missing the consensus of $7.31 billion, and adjusted EPS of $8.44 missed the analyst consensus of $8.85.

Lithia Motors financed the acquisition using existing on-balance sheet capacity. It held $299.4 million in cash and cash equivalents as of March 31, 2023.

Price Action: LAD shares are trading lower by 0.86% at $256.58 premarket on the last check Tuesday.