Lithia Motors Inc. said Tuesday that it has entered the Las Vegas market as it acquired a trio of Hyundai dealerships that are expected to add $225 million in annual revenue.
The transaction actually involved four stores: Hyundai of Las Vegas, Genesis of Las Vegas, Centennial Hyundai and ABC Hyundai that were owned by John Staluppi Jr., said Dave Cantin, CEO of the Dave Cantin Group. The western region office of DCG Acquisitions, a Dave Cantin Group company, represented Staluppi Jr. in the transaction.
Terms of the May 17 transaction weren’t released, but Lithia said it paid for the Hyundai dealerships using funding available on its balance sheet.
“We are thrilled to make a strategic entrance into the Las Vegas market with three of the four Hyundai points in the area, giving us a dominant presence with a dynamic growing brand,” Lithia CEO Bryan DeBoer said in a statement. “These franchises are matched perfectly with the local market demographics and further expand the reach and selection of our Driveway offerings by providing consumers transportation solutions wherever, whenever and however they desire.”
Driveway is Lithia’s digital retail platform.
In July 2020, Lithia announced a five-year plan to grow its annual revenue to $50 billion and its earnings per share to $50. Much of that growth will come through dealership acquisitions and growth in Driveway. With the latest deals, Lithia said it has purchased dealerships expected to generate more than $6.9 billion in annual revenue.
The retailer this month also raised nearly $2 billion in additional capital through equity and debt offerings to help it buy more dealerships.
“With a pipeline of over $15 billion in annualized revenues that meet our disciplined hurdle rates under negotiation, our accelerated pace of acquisitions will continue into the coming quarters,” DeBoer said in a statement.
Lithia of Medford, Ore., ranks No. 3 on Automotive News‘ list of the top 150 dealership groups based in the U.S., retailing 171,168 new vehicles in 2020. But with Lithia’s April acquisition of Michigan’s Suburban Collection, Lithia is the second-largest group going forward.