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Lithia (LAD) Acquires Carousel Motor to Expand Footprint
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Lithia Motors, Inc. (LAD - Free Report) announced the acquisition of Carousel Motor Group. Through this acquisition, the auto retailer aims to expand its footprint in Minneapolis-Saint Paul, MN, which is considered one of the largest markets in the North Central Region. Carousel Motor’s acquisition is expected to add around $900 million to LAD’s annualized revenues.
Bryan DeBoer, president and CEO of Lithia, said that the expansion in Twin Cities will help the company build its network in the North Central Region to foster long-term relationships with its customers and provide its omnichannel solutions to the market.
Nine dealerships, which comprise both premier luxury and domestic brands and are mainly located in the greater Twin Cities area, are part of this acquisition. Among these dealerships, Carousel Hudson Ford is the largest location in Wisconsin and the company’s first Ford dealership in the state. The store adds more brand offerings to LAD's already existing footprint. The company already has three stores in Wisconsin, which are located in Madison and the Milwaukee area.
Apart from the Carousel Hudson Ford dealership in Wisconsin, Lithia has acquired eight stores in Minnesota, including Audi St. Paul in Maplewood, Audi Minneapolis in Golden Valley, BMW of Minnetonka and North Branch Chevrolet. Other acquired stores are Coon Rapids Chrysler-Dodge-Jeep-Ram, Porsche St. Paul in Maplewood, Porsche Minneapolis and Twin Cities Performance Ferrari in Golden Valley.
Earlier this year, Lithia acquired U.K. car dealership group Pendragon, which is expected to add around $4.5 billion to its annualized revenues. In 2024, the auto retailer has so far added $5.4 billion in expected annualized revenues before the end of its first quarter.
Per Tina Miller, CFO of Lithia, the company has divested in Suburban Infiniti of Novi in Michigan so far this year.
The acquisition, which is expected to close in the next six to eight weeks, has been financed using LAD’s existing liquidity.
The Zacks Consensus Estimate for MOD’s 2024 sales and earnings indicates year-over-year growth of 4% and 67.2%, respectively. The earnings per share (EPS) estimates for 2024 and 2025 have improved 22 cents each in the past 30 days.
The Zacks Consensus Estimate for GM’s 2024 sales and earnings implies growth of 1.8% and 17.2%, respectively, year over year. The EPS estimate for 2024 and 2025 has improved $1.16 and $1.50, respectively, in the past 30 days.
The Zacks Consensus Estimate for ALSN’s 2024 sales and earnings suggests year-over-year growth of 2.1% and 3.2%, respectively. The EPS estimate for 2024 and 2025 has improved 85 cents and 71 cents, respectively, in the past 30 days.
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Lithia (LAD) Acquires Carousel Motor to Expand Footprint
Lithia Motors, Inc. (LAD - Free Report) announced the acquisition of Carousel Motor Group. Through this acquisition, the auto retailer aims to expand its footprint in Minneapolis-Saint Paul, MN, which is considered one of the largest markets in the North Central Region. Carousel Motor’s acquisition is expected to add around $900 million to LAD’s annualized revenues.
Bryan DeBoer, president and CEO of Lithia, said that the expansion in Twin Cities will help the company build its network in the North Central Region to foster long-term relationships with its customers and provide its omnichannel solutions to the market.
Nine dealerships, which comprise both premier luxury and domestic brands and are mainly located in the greater Twin Cities area, are part of this acquisition. Among these dealerships, Carousel Hudson Ford is the largest location in Wisconsin and the company’s first Ford dealership in the state. The store adds more brand offerings to LAD's already existing footprint. The company already has three stores in Wisconsin, which are located in Madison and the Milwaukee area.
Apart from the Carousel Hudson Ford dealership in Wisconsin, Lithia has acquired eight stores in Minnesota, including Audi St. Paul in Maplewood, Audi Minneapolis in Golden Valley, BMW of Minnetonka and North Branch Chevrolet. Other acquired stores are Coon Rapids Chrysler-Dodge-Jeep-Ram, Porsche St. Paul in Maplewood, Porsche Minneapolis and Twin Cities Performance Ferrari in Golden Valley.
Earlier this year, Lithia acquired U.K. car dealership group Pendragon, which is expected to add around $4.5 billion to its annualized revenues. In 2024, the auto retailer has so far added $5.4 billion in expected annualized revenues before the end of its first quarter.
Per Tina Miller, CFO of Lithia, the company has divested in Suburban Infiniti of Novi in Michigan so far this year.
The acquisition, which is expected to close in the next six to eight weeks, has been financed using LAD’s existing liquidity.
Zacks Rank & Key Picks
LAD currently has a Zacks Rank #3 (Hold).
Some better-ranked players in the auto space are Modine Manufacturing Company (MOD - Free Report) , General Motors Company (GM - Free Report) and Allison Transmission Holdings, Inc. (ALSN - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for MOD’s 2024 sales and earnings indicates year-over-year growth of 4% and 67.2%, respectively. The earnings per share (EPS) estimates for 2024 and 2025 have improved 22 cents each in the past 30 days.
The Zacks Consensus Estimate for GM’s 2024 sales and earnings implies growth of 1.8% and 17.2%, respectively, year over year. The EPS estimate for 2024 and 2025 has improved $1.16 and $1.50, respectively, in the past 30 days.
The Zacks Consensus Estimate for ALSN’s 2024 sales and earnings suggests year-over-year growth of 2.1% and 3.2%, respectively. The EPS estimate for 2024 and 2025 has improved 85 cents and 71 cents, respectively, in the past 30 days.