Lithia Adds $1.0 Billion in Annualized Revenue; Welcomes Downtown Los Angeles Auto Group
08 August 2017 - 10:00PM
Business Wire
Lithia Motors, Inc. (NYSE: LAD) has acquired Downtown Los
Angeles Auto Group (“DTLA”), comprised of Audi, Mercedes-Benz,
Nissan, Porsche, Toyota, and Volkswagen stores located in downtown
Los Angeles and a Nissan store in nearby Carson. On a forecasted
annualized basis, DTLA can generate $1 billion in revenue and $0.55
in earnings per share. We are increasing 2017 guidance to a range
of $8.55 to $8.70 per share.
“We are pleased to continue our robust acquisition cadence of
purchasing strong assets with considerable upside,” said Bryan
DeBoer, President and Chief Executive Officer. “These stores are
located in the fast-growing downtown area, within close proximity
to the Staples Center and L.A. Live, and are among the largest
volume stores of their brands in the nation.” DeBoer added, “We are
excited to partner with Elay Sung and the entire Downtown LA team
to accelerate their growth.”
DTLA joins DCH, Carbone and the Baierl Auto Group to further
diversify Lithia and grow through sharing best practices,
high-performing people and innovative technology. Lithia is
strengthening its omnichannel retail strategy focused on expanding
its customer base from coast to coast.
“This opportunity deploys approximately half of the $300 million
raised in our recent senior notes offering,” said DeBoer. He added,
“The remaining funds from the notes offering, our free cash flow
and a recently increased syndicated credit facility support our
continued growth cadence. Improving performance to realize the full
potential of our acquisitions achieves greenfield rates of
return.”
About Lithia
Lithia Motors, Inc. is one of the largest automotive retailers
in the United States and is among the fastest growing companies in
the Fortune 500 (#318-2016) with 167 stores representing 30 brands
in 18 states. We offer vehicles online and through our nationwide
retail network. Our “Growth Powered by People” strategy drives us
to innovate and continuously improve the customer experience.
Sites
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Lithia Motors on Twitterhttp://twitter.com/lithiamotors
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Lithia Motors, Inc.John North, 541-618-5748Senior Vice President
and Chief Financial Officer
Lithia Motors (NYSE:LAD)
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