Benzinga | Aug 24, 2021 07:17AM EDT

Lithia & Driveway Acquires Rock Honda; Terms Not Disclosed; Co. ExpectsRock Honda to Generate $170M In Annualized Revenues

Lithia & Driveway (NYSE: LAD) today announced the acquisition of Rock Honda, a Top 20 Honda New Volume Dealer in the U.S. The purchase of this high-performing Honda dealership in the Inland Empire continues LAD's fast-paced growth trajectory and expands the reach of its omni-channel network.

Rock Honda is located in Fontana, CA and was the 16th largest New Volume Honda store in the nation in 2020. In addition to vehicle sales and service, Rock Honda is also licensed to provide customers with personal insurance as part of their consumer offerings.

"We are excited to reach more consumers in the Southwest region and welcome the Rock Honda team to the Lithia & Driveway family. This high-performing, customer-focused store expands our omni-channel network and introduces a new adjacency with personal insurance products, further complementing our ability to provide consumers transportation solutions wherever, whenever and however they desire," said Bryan DeBoer, LAD President and CEO.

Rock Honda is expected to generate $170 million in annualized revenues, bringing LAD's total expected annualized revenue acquired to date in 2021 to over $4.9 billion. Lithia is pacing ahead of their 5-year plan to achieve $50 in earnings per share (EPS) and $50 billion in revenue by 2025. This purchase was financed using an existing on-balance sheet capacity.