What is going on with LAD?
Lithia Motors, Inc. (LAD) today announced the acquisition of Rock Honda, a top 20 Honda new volume dealer in the United States. Rock Honda is located in Fontana, CA and was the 16th largest New Volume Honda store in the nation in 2020.
Shares of LAD increased 0.97% to $339.14 as of Tuesday at 12:27pm.
What does this mean for Lithia Motors?
Lithia's acquisition of its most recent Honda dealership continues the company's fast-paced growth trajectory and expands the reach of its omni-channel network. The $170 million in annualized revenues that Rock Honda is expected to generate will bring Lithia's total expected annualized revenue to over $4.9 billion. This keeps Lithia on track to meet their 5-year plan of achieving $50 billion in revenue by 2025.
"We are excited to reach more consumers in the Southwest region and welcome the Rock Honda team to the Lithia & Driveway family. This high-performing, customer-focused store expands our omni-channel network and introduces a new adjacency with personal insurance products, further complementing our ability to provide consumers transportation solutions wherever, whenever and however they desire," said Bryan DeBoer, LAD President and CEO
The purchase was financed using an existing on-balance sheet capacity.
LAD has an Overall Score of 48. Find out what this means to you and get the rest of the rankings on LAD!
Lithia Motors is a retailer of new and used vehicles and related services. The company offers 33 brands of vehicles at over 200 stores in 22 states. The company has expanded largely through the acquisition of dealerships in smaller regional markets and via deals in New York and Southern California. Annual revenue in 2020 was $13.1 billion and we see over $21 billion possible in 2021. In 2020, new-car sales were about 52% of total revenue. Lithia was founded in 1946, went public in 1996, and is now one of the largest U.S. auto dealerships. It is based in Medford, Oregon.