Lithia & Driveway Expands Retail Network in Southeast Region and Provides Share Repurchase Update

Rhea-AI Summary

Lithia & Driveway (LAD) has announced the acquisition of two Mercedes-Benz dealerships in Collierville, TN and Jackson, MS, marking its first Mercedes-Benz presence in the Southeast region. The acquisition is expected to contribute $220 million in annualized revenue, bringing LAD's total year-to-date acquired revenue to $400 million. The company financed the purchase using existing balance sheet capacity. Additionally, LAD provided an update on its share repurchase program, revealing it has invested $230 million to repurchase approximately 729,000 shares at an average price of $315 per share, representing 2.8% of outstanding shares. The company still has $589 million available under its current repurchase authorization and maintains a balanced approach between acquisitions and share repurchases.

Positive

• Strategic acquisition of two Mercedes-Benz dealerships adding $220 million in annualized revenue
• Expansion into luxury market segment with first Mercedes-Benz stores in Southeast region
• Strong share repurchase program with $230 million invested, reducing outstanding shares by 2.8%
• Healthy balance sheet with existing capacity to finance acquisitions
• $589 million still available for future share repurchases

Negative

• None.

MEDFORD, Ore., June 10, 2025 /PRNewswire/ -- Lithia & Driveway (NYSE: LAD) today announced the purchase of two Mercedes-Benz stores in Collierville, TN and Jackson, MS. This strategic move increases store density and luxury mix by adding LAD's first Mercedes-Benz store in the Southeast region, bringing an estimated $220 million in annualized revenue.

"We are thrilled to expand our presence in the Southeast with the addition of these two premier Mercedes-Benz stores. These acquisitions align with our strategic focus on growing in high-performing regions and strengthen our luxury brand portfolio. We look forward to building on the strong foundations these teams have established and accelerating the stores' growth and potential as part of our omnichannel ecosystem," said Bryan DeBoer, Lithia & Driveway President and CEO. 

This addition brings LAD's total year-to-date expected annualized revenue acquired to $400 million. This acquisition was financed using existing on-balance sheet capacity. 

Share Repurchase Update

To date this year, LAD has invested $230 million to repurchase approximately 729,000 shares at a weighted average price of $315 per share. This represents 2.8% of outstanding shares. $589 million remains available for repurchase under the existing share repurchase authorization. Management remains committed to a balanced approach to capital allocation and currently sees acquisitions and share repurchases at parity.

About Lithia & Driveway (LAD)

Lithia & Driveway (NYSE: LAD) is the largest global automotive retailer providing a wide array of products and services throughout the vehicle ownership lifecycle. Simple, convenient, and transparent experiences are offered through our comprehensive network of physical locations, e-commerce platforms, captive finance solutions, fleet management offerings, and other synergistic adjacencies. We deliver consistent, profitable growth in a massive and unconsolidated 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.

Sites
www.lithia.com
www.investors.lithiadriveway.com
www.lithiacareers.com
www.driveway.com
www.greencars.com
www.drivewayfinancecorp.com

Lithia & Driveway on Facebook
https://www.facebook.com/LithiaMotors
https://www.facebook.com/DrivewayHQ

Lithia & Driveway on X
https://x.com/lithiamotors
https://x.com/DrivewayHQ
https://x.com/GreenCarsHQ

Lithia & Driveway on LinkedIn
https://www.linkedin.com/company/lithia-motors/

Lithia & Driveway on YouTube
https://www.youtube.com/@Lithia_Motors/featured

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SOURCE Lithia Motors, Inc.

FAQ

What is the value of Lithia & Driveway's (LAD) recent Mercedes-Benz dealership acquisition?

The two Mercedes-Benz dealerships are expected to contribute $220 million in annualized revenue to LAD.

How many shares has LAD repurchased in 2025 and at what price?

LAD has repurchased approximately 729,000 shares at a weighted average price of $315 per share, totaling $230 million.

Where are the new LAD Mercedes-Benz dealerships located?

The new Mercedes-Benz dealerships are located in Collierville, Tennessee and Jackson, Mississippi.

How much money remains in LAD's share repurchase authorization?

LAD has $589 million remaining available for repurchase under the existing share repurchase authorization.

What is LAD's total year-to-date acquired revenue for 2025?

LAD's total year-to-date expected annualized revenue from acquisitions is $400 million.