|Lithia Motors & Driveway (LAD) Adds $2.4 Billion in Annualized Revenue with Addition of The Suburban Collection, a Major Platform in Key North Central Region|
|Release: 4/13/2021 7:15:00 AM|
Transaction brings 2,250 new team members and 34 locations to the Lithia portfolio
MEDFORD, Ore., April 13, 2021 /PRNewswire/ -- Lithia Motors & Driveway (NYSE: LAD) today announced it has acquired The Suburban Collection, headquartered in Troy, Michigan. The acquisition is the first major platform in their North Central region and is expected to add $2.4 billion in annualized revenues. The transaction brings Lithia's total expected annualized revenue acquired to $6.5 billion since the launch of its 5-year plan to reach $50 billion in revenue and $50 of earnings per share just nine months ago. Lithia Motors & Driveway has now completed six of the eight largest acquisitions in the industry and is outpacing the plan's $4 billion annual target by over sixty percent.
Lithia Motors & Driveway (NYSE: LAD) today announced it has acquired The Suburban Collection, headquartered in Troy, Mich.
Suburban Motors was founded by the Fischer family in 1948 in Michigan as a single Oldsmobile dealership and has grown to more than 34 locations, with 2,250 team members representing an extremely diversified mix of 33 brands. "The Suburban Collection is a leader in the Midwest automotive retailing sector and a respected fixture in its local communities for more than 70 years," said Bryan DeBoer, Lithia Motors & Driveway's President and CEO. "David Fischer, Jr. and his father, David T. Fischer, have earned a phenomenal reputation over those seven decades for taking excellent care of their customers, team members, and local communities. We are pleased that David Fischer, Jr. will join our team leading and continuing to expand the Suburban Collection footprint in the North Central region. We welcome the entire Suburban team to the Lithia and Driveway family."
The acquisition includes all 56 Suburban Collection franchises, making today's announcement one of the largest number of franchises ever sold in a strategic transaction. "Lithia was once again pleased to work with the Presidio Group, who represented the Fischer family and played a key role in the success of this historic transaction," said DeBoer. "The franchise mix is perfectly suited for Lithia & Driveway's North Central region and provides a massive platform to build on." The Suburban Collection is the 12th largest privately-owned dealership group in the U.S. based on revenue and is in the strongest domestic market serving our country's auto industry employee base. This transaction was financed using most of the remaining capital raised in concurrent equity and debt offerings late last year.
As Lithia enters their 75th year in operation, this historic acquisition marks the auto industry's continued consolidation with the combination of these two companies founded in the 1940's. The Lithia and Suburban organizations come with three quarters of a century of community involvement and the ability to further leverage the network, data, technology, and team members to provide convenient, simple, affordable, and empowered e-commerce, in-home solutions across our nation through the growing Driveway Brand.
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SOURCE Lithia Motors, Inc.