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Lithia (LAD) Boosts Portfolio Via Suburban Collection Buyout
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Lithia Motors (LAD - Free Report) announced the acquisition of Troy-based The Suburban Collection. The buyout includes 56 franchises, representing one of the biggest acquisitions by the auto retailer. The deal has strengthened Lithia’s position in the North Central region and is expected to add $2.4 billion in the firm’s annualized revenues. The deal was funded through the capital raised in concurrent equity and debt offerings in late 2020.
Lithia is highly optimistic about the buyout as The Suburban Collection is the 12th largest dealership in the United States in terms of revenues. The acquired franchises supplement Lithia’s existing product portfolio, and align with the company’s plan of fortifying the reach and density of its network to serve customers more conveniently.
Lithia is one of the leading automotive retailers of new and used vehicles along with related services in the United States. It offers tailored services complemented through its nationwide network. The auto retailer continuously strives to make acquisitions for increasing market share and catering to customer requirements in a better way.
The spree of buyouts like John Eagle dealerships, Keyes Automotive dealerships and others brought the company's network expansion to more than $3.5 billion in revenues in 2020. In February 2021, it announced the acquisition of two dealerships in Florida from Fields Auto Group, which is likely to add $200 million in its annualized revenues. Early this month, Lithia expanded footprint in the Southeast region with the buyout of Fink Automotive Group. The deal is anticipated to add $430 million in annualized revenues and boost the auto retailer’s revenues in the Southeast region to more than $1 billion. Late last month, Lithia acquired Avondale Nissan dealership in Phoenix in a bid to bolster its offerings in the second largest market in the Southwest region, which is expected to add $75 million in its annualized revenues.
Lithia earlier announced a five-year plan to yield $50 billion in revenues and $50 in earnings per share. Since the plan’s roll-out, the retailer has achieved more than $6.5 billion in total annualized revenues. With the recent acquisition of The Suburban Collection, Lithia completed six of the eight largest buyouts in the industry and is currently exceeding the plan's $4 billion annual target by more than 60%.
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Lithia (LAD) Boosts Portfolio Via Suburban Collection Buyout
Lithia Motors (LAD - Free Report) announced the acquisition of Troy-based The Suburban Collection. The buyout includes 56 franchises, representing one of the biggest acquisitions by the auto retailer. The deal has strengthened Lithia’s position in the North Central region and is expected to add $2.4 billion in the firm’s annualized revenues. The deal was funded through the capital raised in concurrent equity and debt offerings in late 2020.
Lithia is highly optimistic about the buyout as The Suburban Collection is the 12th largest dealership in the United States in terms of revenues. The acquired franchises supplement Lithia’s existing product portfolio, and align with the company’s plan of fortifying the reach and density of its network to serve customers more conveniently.
Lithia is one of the leading automotive retailers of new and used vehicles along with related services in the United States. It offers tailored services complemented through its nationwide network. The auto retailer continuously strives to make acquisitions for increasing market share and catering to customer requirements in a better way.
The spree of buyouts like John Eagle dealerships, Keyes Automotive dealerships and others brought the company's network expansion to more than $3.5 billion in revenues in 2020. In February 2021, it announced the acquisition of two dealerships in Florida from Fields Auto Group, which is likely to add $200 million in its annualized revenues. Early this month, Lithia expanded footprint in the Southeast region with the buyout of Fink Automotive Group. The deal is anticipated to add $430 million in annualized revenues and boost the auto retailer’s revenues in the Southeast region to more than $1 billion. Late last month, Lithia acquired Avondale Nissan dealership in Phoenix in a bid to bolster its offerings in the second largest market in the Southwest region, which is expected to add $75 million in its annualized revenues.
Lithia earlier announced a five-year plan to yield $50 billion in revenues and $50 in earnings per share. Since the plan’s roll-out, the retailer has achieved more than $6.5 billion in total annualized revenues. With the recent acquisition of The Suburban Collection, Lithia completed six of the eight largest buyouts in the industry and is currently exceeding the plan's $4 billion annual target by more than 60%.
The company currently carries a Zacks Rank #3 (Hold). Some better-ranked players in the same industry include Americas CarMart, Inc. (CRMT - Free Report) , AutoNation (AN - Free Report) and Penske Automotive (PAG - Free Report) , each carrying a Zacks Rack #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.
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