Lithia Motors Accelerates Growth in Southeast: Acquisitions Generate More than $240M Annually – Lithia Motors (NYSE:LAD)

Lithia Motors, Inc. (NYSE:LAD) shares are trading lower today. The company unveiled its expansion into the Southeast region of the United States with the purchase of stores that are expected to generate more than $240 million in annual revenue.

Specifically, the company purchased Sunrise Chevrolet Buick GMC in Collierville and Sunrise Buick GMC in Wolfchase, both in Memphis, Tennessee, and Woodbridge Hyundai in Greater Toronto.

The iconic Sunrise stores in Tennessee symbolize Lithia Motors’ entry into the Memphis market, expanding its presence in the most lucrative region of the country.

In addition, the Woodbridge Hyundai branch will utilize the existing facility, which will enable it to generate solid profits.

With these additions, the company’s total expected year-to-date acquisition revenue exceeds $5.6 billion. The company financed these acquisitions using existing balance sheet capacity.

Lithia & Driveway recently disclosed a $350 million increase in share repurchase authorization approved by its Board of Directors, bringing total funds available for future repurchases to approximately $660 million.

Investors can gain exposure to stocks through Invesco S&P Midcap 400 Pure Value ETF (NYSE:RFV) i Invesco S&P MidCap value thanks to the Momentum ETF (NYSE:XMVM).

Reduction: LAD shares were down 1.15% at $256,885 at last check on Tuesday.

Reservation: This content was created in part using AI tools and reviewed and published by Benzinga editors.