Lithia & Driveway completes deal to expand its UK operations
Lithia & Driveway has completed its transaction to acquire the U.K. motor and fleet management divisions of Pendragon, one of that nation’s largest dealership groups, and to form a strategic partnership with Pinewood Technologies.
The deal, which was initiated with an agreement announced in September, is expected to generate more than $4.5 billion in annual revenues, the company said.
“This begins an exciting new chapter in our long-term growth strategy as we turn our efforts to 2024 and beyond, executing and demonstrating the power of what the Lithia & Driveway ecosystem can and will produce,” president and CEO Bryan DeBoer said in a news release.
“We look forward to delivering on the significant potential in this new partnership, adding $4.5 billion in revenue, entering the fleet management space and welcoming our new colleagues to the Lithia & Driveway family.”
Lithia said its acquisition of Pendragon Vehicle Management adds a profitable fleet management services business to its portfolio, while the U.K. motors business expands the brand and its geographic footprint in the U.K. market.
The partnership includes integrating the Pinewood technology platform across all of Lithia’s U.K. operations. The companies will also co-develop automotive technology to capitalize on the North American market opportunity through a joint venture.
Pinewood’s dealer management software remains listed on the London Stock Exchange under the name Pinewood Technologies PLC and will become a pure-play software-as-a-service business.
“Our investment in Pendragon expands our footprint into Wales and Scotland, while serving to increase our brands, markets and density in existing locations,” Lithia U.K. regional president Neil Williamson said. “This increased footprint, alongside the integration of Pendragon Vehicle Management and migration to a single technology platform with Pinewood, establishes Lithia as a diversified, innovative and scaled U.K. presence with significant advantages to peers.”