As part of an ongoing strategy to reach company milestones, Lithia Motors this week announced yet another store acquisition, along with the opening of a new Chrysler franchise.
Acquisitions will push the company toward achieving its goals in the next few years, more so than organic growth, said company president and chief executive officer Bryan DeBoer in an Auto Remarketing report this winter that recapped the company’s fourth-quarter and full-year 2013 performance.
"The acquisition market is as active as I have ever seen, and there are a number of acquisitions in play at any given week or month," he said in late February. "We continue to look for domestic and import franchises in mid-size rural markets and exclusive luxury franchises in metropolitan markets."
Announced this week is the acquisition by Lithia of Access Ford in Corpus Christi, Texas. The company also noted the opening of Lithia Chrysler Jeep Dodge of Wasilla in Wasilla, Alaska.
The two stores will add an estimated $105 million in annual revenues, officials said.
"We are pleased to be growing with Ford in the Corpus Christi community, which adds to our existing store in the market," DeBoer said. "We also received a new franchise from Chrysler to open a store in Wasilla, which complements our existing stores in Wasilla and Anchorage. Both of these stores fit our strategy of seeking exclusive franchises in regional markets."
Lithia made seven store acquisitions during 2013 and has kept that momentum rolling into 2014.
"We remain focused on achieving the three milestones for long-term growth that we laid out in 2012, which doubles our size in three to nine years," DeBoer said in February.
"I am pleased to announce that we achieved our first milestone by surpassing $4 in consolidated earnings per share this year,” he added, referring to 2013. "We anticipate to achieve our second milestone of approximately $5 per share, and our third milestone or approximately $6 per share, over the next several years."