MEDFORD, Ore.--(BUSINESS WIRE)-- 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 potential.
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 strategy, and often contain words such as “project,” “outlook,” “expect,” “anticipate,” “intend,” “plan,” “believe,” “estimate,” “may,” “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
Senior Vice President and Chief Financial Officer
Source: Lithia Motors, Inc.