Lithia & Driveway Acquires Stohlman Subaru to Expand in Mid-Atlantic Region

Lithia & Driveway Expands in the Mid-Atlantic Region

Lithia & Driveway (NYSE: LAD), a leader in the automotive retail sector, has successfully completed the acquisition of Stohlman Subaru, located in Sterling, Virginia. This strategic move aims to enhance the company's footprint in the thriving Mid-Atlantic arena, an area known for its robust automotive market and customer loyalty.

Strengthening Presence in the Market

With this acquisition, Lithia & Driveway is poised to tap into the strengths of Stohlman Subaru, a well-established dealership in the region. The firm’s President and CEO, Bryan DeBoer, expressed his excitement about the integration of the talented Stohlman team, highlighting the shared commitment to delivering exceptional customer experiences. He stated, "This acquisition strengthens our presence in the dynamic Mid-Atlantic market and reflects our continued focus on creating seamless experiences across our omnichannel platform."

One of the significant benefits of this acquisition is the anticipated annualized revenue of approximately $80 million. Lithia & Driveway managed this expansion by utilizing its existing financial resources, showcasing the company's sound capital allocation strategy. Moreover, this strategic growth aligns with Lithia's overarching goal of creating customer loyalty while exploring the full potential of its platform alongside the new team members.

A Look at Capital Allocations

Since the conclusion of the third quarter, Lithia & Driveway has also focused on optimizing its capital allocation. The company allocated $107 million for share repurchases at an average price of $372, with about $454 million still available under its current repurchase authorization. These financial maneuvers underline the company's strategy to maximize shareholder value while expanding its market reach.

About Lithia & Driveway

Lithia & Driveway is recognized as one of the largest global automotive retailers, providing a comprehensive suite of products and services across various stages of vehicle ownership. The company's commitment to offering convenient and hassle-free experiences is evident through its expansive network of physical locations combined with e-commerce platforms and captive finance solutions. Lithia's diversified business model equips it with the flexibility to pursue its vision of modernizing personal transportation solutions across the board.

The company's strategic approach has resulted in consistent, low-risk growth in a massively unconsolidated industry, showing its commitment to enhancing consumer mobility wherever and however needed.

In summary, this acquisition of Stohlman Subaru serves as a testament to Lithia & Driveway's ambitious growth trajectory in the Mid-Atlantic region and its continual efforts to improve customer engagement and loyalty in a competitive market.