Lithia Motors, Inc. (NYSE: LAD) has acquired six marquee stores from
Prestige Family of Fine Cars in Bergen County, New Jersey, including a
BMW, Mini, Mercedes, Toyota and two Lexus stores. The group is estimated
to generate $900 million in steady state annual revenue.
"We are pleased to welcome the Prestige team to our family," said Bryan
DeBoer, President and Chief Executive Officer. "These stores are
centrally located in Paramus and Ramsey, New Jersey near our existing
DCH operations. These are high volume, luxury stores nicely matching one
of the most affluent areas in the country."
The proximity to our existing locations will allow us to share best
practices and realize synergies among the Prestige, DCH and Carbone
stores. Prestige will diversify our brand mix in the Northeast,
strengthening our luxury product offerings. We seek strong franchised
stores in dominant market areas that have yet to realize their full
Commenting on the acquisition activity, DeBoer stated, "With this
transformational acquisition, along with the previously announced Day
Auto Group and Ray Laks transactions, we have added over $1.3 billion in
steady state annual revenue in the first two months of 2018. As a
result, we are increasing our annual outlook to a range of $12.0-12.5
billion in revenue and $10.60 in earnings per share. Day and Prestige
are contributing minimally to our 2018 earnings due to their relative
underperformance and incremental debt costs, but can deliver earnings
similar to our core operations in the future."
Lithia Motors, Inc. is one of the largest automotive retailers in the
United States and is among the fastest growing companies in the Fortune
500 (#318-2017) with 185 stores representing 30 brands in 18 states. We
offer vehicles online and through our nationwide retail network. Our
"Growth Powered by People" strategy drives us to innovate and
continuously improve the customer experience.
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This press release includes "forward-looking statements" within the
meaning the "Safe-Harbor" provisions of the Private Securities
Litigation Reform Act of 1995. Forward-looking statements include
statements regarding our goals, plans, projections and guidance
regarding our financial position, results of operations, market
position, pending and potential future acquisitions and business
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"seek," "would," "should," "likely," "goal," "strategy," "future,"
"maintain," "continue," "remain," "target" or "will," and similar
references to future periods.
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Lithia Motors, Inc.
John North, 541-618-5748
President and Chief Financial Officer