Lithia Motors Inc. (LAD - Free Report) announced the acquisition of Audi Auto Gallery in Woodland Hills, CA. The company will relocate the store to Calabasas in California, making it the first exclusive Audi dealership in the city. Following the relocation, the store will be renamed as Audi Calabasas.
Lithia Motors expects the acquisition to boost its annual revenues by $120 million. With this, the combined annual revenue from the company’s acquisitions this year comes to over $1 billion. This should significantly augment Lithia Motors’ revenues for 2016.
Lithia Motors is benefiting from the expansion of its business through acquisitions and store openings. In Jan 2016, the company announced the acquisition of Riverside Subaru in Riverside, CA. It will rename the store as DCH Subaru of Riverside. This store is expected to boost the company’s revenues by $45 million per annum.
In Feb 2016, Lithia Motors announced the acquisition of Ira Toyota/Scion of Milford, MA. It will rename the newly acquired store as DCH Toyota/Scion of Milford. This store is likely to contribute $65 million to the company’s revenues per annum.
In the second quarter of 2016, Lithia Motors completed the acquisition of a GMC Buick franchise in Helena, MT.
In Aug 2016, Lithia Motors announced the acquisition of Kemp Ford in Thousand Oaks in California, which will be renamed as DCH Ford of Thousand Oaks. The buyout is expected to boost the company’s revenues by $65 million annually.
In Sep 2016, Lithia Motors revealed that it was awarded a Volkswagen franchise in Freehold, NJ, which is its fourth store in Freehold. The store is expected to increase Lithia Motors’ revenues by $35 million annually, enhance its relation with Volkswagen and increase its presence in New Jersey.
In the same month, the company announced the acquisition of the assets of Carbone Auto Group, a nine store platform based in New York and Vermont. The acquisition is expected to boost Lithia Motors’ earnings by 20–25 cents per share in 2017.
In the same month, Lithia Motors announced the acquisition of Greiner Ford Lincoln of Casper, WY. This is the largest standalone dealership in Wyoming. The buyout is expected to boost the company’s revenues by $75 million annually.
Lithia Motors operates in the retail/wholesale auto/truck industry with peers such as AutoNation, Inc. (AN - Free Report) ,Group 1 Automotive, Inc. (GPI - Free Report) and Sonic Automotive Inc. (SAH - Free Report) .
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