PR Newswire
MEDFORD, Ore., Sept. 18, 2023
MEDFORD, Ore., Sept. 18, 2023 /PRNewswire/ -- Lithia & Driveway (NYSE: LAD, "Lithia") announced today that it intends to enter a strategic partnership with Pinewood Technologies and acquire the UK motor and fleet management divisions of Pendragon plc ("Pendragon"), the UK's third largest automotive dealership group. This acquisition will round out Lithia's presence in the UK market and is expected to generate over $4.5 billion USD in annual revenues.
Transaction Overview
About the Transaction
Lithia and Pendragon have signed agreements to enter a strategic partnership with Pinewood Technologies and for Lithia to acquire Pendragon's UK motor division and vehicle management division.
Investment in Innovation
Diversification
Expansion
Bryan DeBoer, Lithia & Driveway President and CEO, said:
"The strategic partnership with Pinewood Technologies and acquisition of Pendragon's UK motor and vehicle management divisions is a massive step in delivering on our longer-term growth strategy. We are excited about the great potential in Pinewood's offering and envision our strategic partnership to further expand this SaaS business globally. Additionally, the proposed acquisition presents a highly synergistic growth opportunity with our existing UK presence with Jardine Motors Group; provides a new adjacency with PVM; and expands our brand and geographic footprint while serving to further strengthen our existing OEM relationships. This transformative transaction provides key strategic components for LAD to achieve its previously stated goal of $2.00 of EPS for every $1 Billion in revenue in the future."
Bill Berman, Chief Executive of Pendragon PLC added:
"Pendragon has built one of the UK's leading automotive retailing businesses, underpinned by a market leading dealer management system, the quality of our people, long-standing relationships with OEMs and excellent execution for customers. The Pendragon Board considers Lithia to be perfectly placed to build on this progress. The launch of Pinewood as a standalone company is a unique and exciting opportunity to create a best-in-class product for customers, which we can market globally and drive substantial value for our shareholders and in Lithia we have the perfect partner to help accelerate Pinewood's push into the hugely attractive North American DMS market."
The cash consideration for the strategic partnership with Pinewood Technologies and acquisition of the UK motor and fleet management divisions of Pendragon is approximately $350 million USD (£280 million GBP). Post-completion, Lithia would have estimated annualized revenues of over $38 billion USD. The acquisition is planned to be financed using existing on-balance sheet capacity. Goldman Sachs & Co. LLC is serving as exclusive financial advisor and Latham & Watkins LLP is serving as legal advisor to Lithia for the transaction.
About Lithia & Driveway (LAD)
Lithia & Driveway (NYSE: LAD) is one of the largest global automotive retailers providing a wide array of products and services throughout the vehicle ownership lifecycle. Convenient and hassle-free experiences are offered through our comprehensive network of physical locations, ecommerce platforms, captive finance solutions and other synergistic adjacencies. We deliver consistent, low-risk, and profitable growth in a massive and unsolicited industry. Our highly diversified and competitively differentiated design provides us the flexibility and scale to pursue our vision to modernize personal transportation solutions wherever, whenever, and however consumers desire.
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SOURCE Lithia Motors, Inc.
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