Lithia Adds $500 Million in Revenue with the Purchase of John Eagle of Dallas/Austin
August 04 2020 - 8:00AM
Business Wire
Lithia Motors, Inc. (NYSE: LAD) announced today the addition of
four John Eagle Dealerships located in Dallas and Austin,
Texas.
“We’re delighted to announce our network expansion in two of the
largest markets in our logistically key South-Central region,” said
Bryan DeBoer, Lithia Motors President and CEO. “We’re excited to
welcome these high-performing teams to the Lithia family. Their
reputation in their communities and extraordinary volume reflect a
commitment to an exceptional customer experience.”
The addition of the John Eagle Dealerships is another example of
Lithia's proven success strategy of acquiring strong,
high-performing franchises. The John Eagle Dealership family and
brand is well-renowned, and this purchase includes John Eagle Honda
of Dallas, Honda Cars of Rockwall, Howdy Honda of Austin and John
Eagle Sports City Toyota. Combined, these businesses add $500
million in annualized revenues and bring Lithia's network expansion
to over $1 billion in revenue thus far in 2020. This acquisition
was financed using free cash flows and existing on-balance sheet
capacity.
“The acceleration of our plan to increase the reach and density
of our network to more conveniently serve our customers is well
underway. Together, with our Driveway ecommerce digital home
channel, we are providing personal transportation solutions
wherever, whenever and however consumers desire,” stated
DeBoer.
These import franchises complement Lithia’s domestic footprint
in Texas to provide a wide range of vehicles to consumers
throughout the South-Central region. Lithia has the broadest
coast-to-coast automotive retail network, reaching 92% of the
United States.
About Lithia
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 our 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, massive 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 www.lithiamotors.com
www.lithiainvestorrelations.com www.lithiacareers.com
Lithia Motors on Facebook
http://www.facebook.com/LithiaMotors
Lithia Motors on Twitter
http://twitter.com/lithiamotors
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version on businesswire.com: https://www.businesswire.com/news/home/20200804005396/en/
Eric Pitt VP, Investor Relations and Treasurer EPitt@lithia.com
(541) 864-1748
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