After half a decade scouting the nation to the north, U.S. megaretailer Lithia Motors Inc. is set to expand its empire into Canada with the purchase of an Ontario-based luxury dealership group.
The pending acquisition of Pfaff Automotive Partners fulfills a longtime goal of Lithia CEO Bryan DeBoer. It will make Lithia the second public dealership group operating in Canada, and it could prod other U.S. dealership groups to consider moves into the smaller but similar market.
DeBoer confirmed to Automotive News last week that the retailer has acquisitions of Canadian dealerships, among others, under contract and slated to close within the next 90 days. Those deals are expected to add $2 billion in annual revenue to Lithia, the second-largest dealership group in the U.S.
"Canada is our No. 1 target," DeBoer told analysts last week. "We've spent the last five years getting to know the dealer body there and have pretty good relationships with most of the lar…