MEDFORD, Ore., May 25, 2021 /PRNewswire/ -- Lithia Motors & Driveway (NYSE: LAD) announced today the acquisition of three Hyundai dealerships in the highly attractive Las Vegas metropolitan area with expected annualized revenues of approximately $225 million.
"We are thrilled to make a strategic entrance into the Las Vegas market with three of the four Hyundai points in the area, giving us a dominant presence with a dynamic growing brand," said Bryan DeBoer, President and CEO. "These franchises are matched perfectly with the local market demographics and further expand the reach and selection of our Driveway offerings by providing consumers transportation solutions wherever, whenever, and however they desire."
This purchase brings LAD's total annualized revenues acquired to over $6.9 billion since the launch of its five-year plan ten months ago. "With a pipeline of over $15 billion in annualized revenues that meet our disciplined hurdle rates under negotiation, our accelerated pace of acquisitions will continue into the coming quarters," said DeBoer. "After raising nearly $2 billion of additional capital through concurrent equity and debt offerings earlier this month, we are more confident than ever in our five-year plan of reaching $50 billion in revenue and $50 earnings per share. This 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.
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SOURCE Lithia Motors, Inc.