![]() Currently, Lithia is on an acquisition binge. The business brought in more over $3.5 billion in annualized revenue last year. With this deal, Lithia has increased its annualized revenues by more than $3.2 billion, laying the groundwork for another strong year of acquisition growth. These dealerships are expected to bring in more than $1.2 billion in annual revenues. The transaction expands the American automotive retailer’s portfolio by adding three Honda, two Chevrolet, two Toyota, one Ford, and one Hyundai stores, as well as a few small outlets. LAD purchased 13 vehicle dealerships in Virginia from Priority Automotive Group in order to extend its presence in the flourishing Mid-Atlantic region. This adds to other key benefits of expanding to Georgia.įDi Benchmark from the Financial Times Ltd 202 13 Car Dealerships Bought: Still On An Acquisition Binge 1 kWh of high voltage power costs approximately 6.6 USD cents, which is one of the lowest rates among competitor countries. Up to 80% of power is generated by hydro and wind power plants, resulting in cleaner and less expensive energy. It is the only country in the region with such access to both the European Union and China, creating the unique potential for foreign enterprises seeking to enter these markets.įurther, another factor which makes the region suitable is its lowest utility costs. It has free trade agreements with the European Union, China, Turkey, Ukraine, EFTA, and CIS countries, obtaining tariff-free access to markets with a combined population of 2.3 billion people, putting Georgian automotive industry at the heart of critical global value chains. Georgia is the quickest route from Europe to China and Asia, and modern train routes require only 8-10 days to complete the voyage. Georgia has a well-connected location in the middle of Eurasia, with contemporary infrastructure and an expanding transportation system, and it offers numerous transit options for supply chain diversification. Georgia is a regional hub for trade, logistics, and global investments for markets east and west, making it an ideal nearshoring site for car manufacturing. ![]() Given Georgia’s suitability in the automotive business, I feel this acquisition is a good choice. The transaction was funded with existing on-balance-sheet capacity. LAD has completed 70% of its $25 billion network development target for the 2025 Plan. The Wade Ford acquisition is expected to raise Lithia & Driveway’s total year-to-date estimated annualized revenue acquired to $3.5 billion, up from $17.5 billion since announcing its 2025 sales goal of $50 billion. LAD announced the acquisition of Wade Ford in Smyrna, Georgia, expanding its Southeast Region footprint and adding an anticipated $285 million in annualized revenue. With the company still executing this strategy with expansion to the US in Atlanta and buying 13 car dealerships, I am optimistic about the company’s future financial strength. I attribute the company’s solid performance to its acquisitions and expansion strategy, resulting in improved financial performance. ![]() Over the last year, the company’s shares gained about 6%, which maintained LAD stock's upward trajectory over the last five years, translating to a total return of about 175%. ![]() The company offers a comprehensive range of financing, leasing, repair, and maintenance services. ( NYSE: LAD) is a North American automotive reseller that sells vehicles from various worldwide automakers. ![]()
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