Lithia Motors continues to add more stores to the dealer group near locations already in the company’s portfolio.
Within days of announcing an acquisition near Pittsburgh, Lithia said on Thursday that it has acquired six marquee stores from Prestige Family of Fine Cars in Bergen County, N.J., including a BMW, Mini, Mercedes-Benz, 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,” Lithia president and chief executive officer Bryan DeBoer said. “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.”
DeBoer maintained that the proximity to the company’s existing locations will allow Lithia to share best practices and realize synergies among the Prestige, DCH and Carbone stores.
He added Prestige will diversify the group’s brand mix in the Northeast, strengthening our luxury product offerings.
DeBoer also emphasized that Lithia seeks 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,” DeBoer said.
“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,” he continued. 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.”