Lithia Motors, Inc. (NYSE: LAD) announced on Thursday that it would acquire three auto dealers in Cedar Rapids, Iowa. Financial terms of the deal were not disclosed.
The stores acquired by the Medford, Ore.- based firm bring an annual revenue of approximately $80 million, the company said. For 2006, the company says it has acquired a total of 13 auto-dealers in the state which have brought in $470 million in annual sales. That represents 16 percent growth from revenues of $2.94 billion in 2005.
We are excited to be able to increase our presence in the state of Iowa. In October of this year, we acquired BMW and Mercedes-Benz stores in Des Moines, said Sid DeBoer, Lithia's Chairman and CEO. We now have 4 stores selling the Cadillac brand and three stores dedicated to the Saturn brand.
The acquisition by the eighth largest-auto dealer group in the U.S. was made to continue its expansion into Midwestern markets. The purchase of the auto-dealers will allow the firm to incorporate the GMC, Buick and Kia brands into the companyâ€™s brand mix.
Lithia Motorâ€™s share decreased 23 cents or 0.88 percent to close at $25.94 in Thursday trading on the New York Stock Exchange.