Lithia & Driveway Completes Successful Sale of North Branch Chevrolet in Minnesota

In a significant development within the automotive dealership sector, Lithia & Driveway (NYSE: LAD) has finalized the sale of North Branch Chevrolet in Minnesota to Tyler Kadlec of Tom Kadlec Automotive. This transaction marks another achievement for Performance Brokerage Services, a prominent force in dealership brokerage, representing Lithia throughout the sale process.

Founded in 1946 by Walt DeBoer in Ashland, Oregon, Lithia began as a modest Chrysler-Plymouth-Dodge dealership. Over the years, it evolved into Lithia Motors, Inc., a publicly traded entity since 1996, reflecting its growth and success in the retail automotive market. Now under the leadership of Sid DeBoer's son, Bryan DeBoer, Lithia has secured its position as the largest dealership group in North America, ranking first on the 2024 Automotive News Top 150 Dealership Groups based on 2023 new vehicle sales.

As the Director of Network Development for Lithia & Driveway, Matt Whitmer explained, the decision to divest from the North Branch Chevrolet store was strategic. They enlisted the help of Performance Brokerage Services, particularly Emily Bourne and Matt Willis, to find a qualified buyer. The expertise and dedication demonstrated by the Performance team were instrumental in facilitating a seamless transaction.

Performance Brokerage Services has established a strong reputation, having facilitated over 300 dealership sales over the past five years, making it the leading dealership brokerage firm in North America. Key figures in this transaction included Paul Kechnie, Senior Partner, Emily Bourne, Partner, and Matt Willis, Partner, from the Texas and Midwest offices of Performance Brokerage Services. Emily Bourne, reflecting on the sale, remarked on the collaborative nature of the process, stating that it was a privilege to work alongside both Lithia and Tom Kadlec Automotive teams.

The newly acquired North Branch Chevrolet is set to be rebranded as Tom Kadlec Chevrolet and will continue its operations at its existing location in North Branch, Minnesota, further solidifying Kadlec's presence in the automotive market.

Tyler Kadlec, the Chief Operating Officer at Tom Kadlec Automotive, expressed his enthusiasm regarding the acquisition, calling it an exciting new chapter for his family-owned business, which has been serving the Rochester, Minnesota community since 1979. Tom Kadlec Automotive currently represents Honda and Kia, and this acquisition allows them to broaden their footprint by adding Chevrolet to their offerings.

The overarching sentiment shared by both parties involved in the sale was one of appreciation for the professionalism and expertise provided by Performance Brokerage Services. Tyler Kadlec lauded the team's transparency and dedication, which played a vital role in ensuring a straightforward and stress-free process.

As the automotive industry continues to evolve, transactions like the sale of North Branch Chevrolet showcase the dynamic nature of dealership ownership and management. Companies such as Performance Brokerage Services are pivotal in navigating these changes, leveraging their vast industry knowledge to facilitate successful buy-sell transactions.

In summary, the successful transition of North Branch Chevrolet from Lithia & Driveway to Tom Kadlec Automotive exemplifies how strategic partnerships and expert guidance can lead to fruitful outcomes in the automotive dealership arena. Both Lithia and Tom Kadlec Automotive look forward to continuing their respective journeys—one focused on divestiture and the other on expansion—which may influence the community positively in Minnesota.