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Lithia Motors (NYSE:LAD) Lithia & Driveway announced the acquisition of Elk Grove Subaru in California, further strengthening its presence in the Sacramento area and expanding its Southwest regional network. Deal terms were not disclosed.
The acquisition is expected to generate $100 million in annual revenue, bringing LAD’s total year-to-date acquired annualized revenue to $180 million.
The company funded the transaction using existing on-balance sheet capacity. It held $445.8 million in cash and equivalents as of December 31, 2024.
“This addition strengthens our presence in the Southwest region and continues our strategy of expanding our network with high-performing partners like Subaru,” stated Bryan DeBoer, Lithia & Driveway President and CEO.
Also Read: Lithia Motors’ Solid Q4 Propels Stock Higher: Earnings Beat, Sales Jump, Dividend & More
Additionally, LAD announced a $350 million increase in its share repurchase authorization, bringing total available funds to approximately $748 million.
So far this year, the company has repurchased over 197,500 shares for $71 million at an average price of $361 per share, representing 0.75% of outstanding shares.
Price Action: LAD shares traded lower by 2.24% at $318.03 at the last check Tuesday.
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This article Lithia & Driveway Bolsters Retail Network And Boosts Stock Buyback: Details originally appeared on Benzinga.com
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