Lithia & Driveway announced the acquisition of Subaru of Mobile in Mobile, Alabama and Michael’s Subaru in Bellevue, Washington, boosting the company’s presence in its Northwest and Southeast regions.
By expanding into new markets, such as Mobile, and expanding offerings in prime markets such as greater Seattle, LAD grows closer to its goal of delivering and servicing consumer vehicles within a 100-mile radius anywhere in the country.
With the purchase of Subaru of Mobile, LAD crosses the border into Alabama adding a new state to the Southeast Region, the company’s least dense network. Gaining a foothold in the state’s third-most populous city represents LAD’s ongoing pursuit to complete its presence within the region’s three remaining states.
“This Southeast expansion—coupled with growth and outstanding performances of our existing stores—has us outpacing our 5-year Plan,” said Bryan DeBoer, LAD President and CEO. ”These acquisitions amplify our digital Driveway brand and fuel our fast-paced network development.”
The purchase of Michael’s Subaru of Bellevue comes on the heels of the Michael’s Toyota of Bellevue purchase a few weeks ago, making it LAD’s third store in the market. The Michael’s Subaru store is one of the strongest in the country and is expected to grow to be a top 10 volume Subaru store in the coming years.
Combined, these two Subaru stores are expected to generate $155 million in annualized revenues, bringing LAD’s total expected annualized revenue acquired to $8 billion since the announcement of its 5-year Plan to achieve $50 in earnings per share (EPS) and $50 billion in revenue by 2025. Both acquisitions were financed using existing on-balance sheet capacity.