Lithia & Driveway has acquired Elk Grove Subaru in Elk Grove, CA, further solidifying its presence in the Sacramento area and advancing its expansion strategy in the Southwest region.
The acquisition is expected to contribute approximately $100 million in annual revenue and brings Lithia’s total year-to-date annualized revenue acquired to $180 million. The purchase was financed using existing on-balance sheet capacity.
"We are excited to welcome the talented team at Elk Grove Subaru to the Lithia and Driveway team," said Bryan DeBoer, Lithia & Driveway president and CEO. "This addition strengthens our presence in the Southwest region and continues our strategy of expanding our network with high-performing partners like Subaru. We look forward to continuing the store’s legacy of building customer loyalty and leveraging our omnichannel capabilities to realize Elk Grove’s potential."
Increase in Share Repurchase Authorization
In addition to the acquisition, Lithia & Driveway announced a $350 million increase in its share repurchase authorization, bringing total funds available for future repurchases to approximately $748 million.
So far in 2024, Lithia has repurchased more than 197,500 shares at a weighted average price of $361 per share, amounting to an investment of more than $71 million. This represents 0.75% of its outstanding shares.
