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Lithia & Driveway, part of Lithia Motors, Inc. (NYSE:LAD), announced on Tuesday the acquisition of Porsche Beverly Hills and Audi Santa Monica dealerships.
Lithia Motors is the parent entity, while Lithia & Driveway reflects its combined physical dealership network and online retail platform.
The addition of these two premium stores is expected to contribute about $450 million in annualized revenue, with both locations having the potential to rank among the highest-volume outlets globally for their respective brands.
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The acquisitions raise the company’s year-to-date expected annualized revenue acquired to $2.1 billion.
The company said it financed the transaction using existing balance sheet capacity.
Bryan DeBoer, President and CEO of the company, said, “We’re excited to welcome Porsche Beverly Hills and Audi Santa Monica to the Lithia family-two iconic dealerships rooted in of the world’s most prestigious and globally recognized luxury automotive markets. These stores elevate our luxury mix, expand our ecosystem, and will deliver meaningful, accretive earnings. We’re excited to continue our growth by adding high-quality stores comfortably within our disciplined return hurdle rates.”
Last month, the company posted its third-quarter results, reporting adjusted earnings of $9.50 per share, up 17% from $8.14 a year ago and ahead of the $8.52 consensus estimate.
Quarterly revenue rose 4.9% year-over-year to a record $9.68 billion, surpassing projections of $9.46 billion, driven by steady growth in vehicle sales.
The company ended the third quarter with approximately $1.9 billion in cash and cash equivalents, marketable securities, and availability on revolving lines of credit.
Price Action: LAD stock closed at $294.27, up 0.34% on Monday.
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Photo by T. Schneider via Shutterstock
Posted In: LAD
