LAD Acquires $100 million in Revenue, Expanding Presence in North Central Region
This purchase further increases Lithias footprint in the North Central Region of the United States.
Lithia Motors & Driveway (NYSE: LAD) today announced it has acquired Ramsey Subaru and Mazda, the highest-volume Subaru and Mazda dealers in Iowa. This purchase further increases Lithia’s footprint in the North Central Region of the United States.
“We are delighted to add another high-performing store to serve our customers in the North Central Region,” said Bryan DeBoer, Lithia Motors and Driveway’s President and CEO. “This acquisition improves our brand mix and ability to complete in-home and in-network solutions throughout their entire vehicle ownership lifecycle.”
Lithia Motors has the broadest coast-to-coast automotive retail network in the nation, reaching over 92% of the United States. The Ramsey acquisition is expected to add $100 million in revenue, bringing the company’s total network expansion to over $3.5 billion in annualized revenue thus far in 2020. Lithia Motors financed this transaction using capital recently raised in concurrent equity and debt offerings that closed in early October.
In addition to expanding Lithia’s network, Ramsey Subaru & Mazda also strengthens its corporate responsibility initiatives—particularly in community enrichment. The dealership recently received the 2020 Subaru Love Promise Community Commitment Award. This award nationally recognizes Subaru retailers who are making the world a better place by supporting causes in local communities. These efforts focus on important areas, such as the environment, health, education, and pets. “We are extremely excited to have a team with this much passion for their communities join the Lithia family,” said DeBoer.
About Lithia Motors:
Lithia Motors, Inc. 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, 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 their 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.
Sites:
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www.lithiainvestorrelations.com
www.lithiacareers.com
www.driveway.com
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