Benzinga | Dec 1, 2020 09:10AM EST

Lithia Motors & Driveway Acquires Ramsey Subaru And Mazda Dealership

Lithia Motors & Driveway (NYSE:LAD) today announced it has acquired Ramsey Subaru and Mazda, the highest-volume Subaru and Mazda dealers in Iowa. This purchase further increases Lithia's footprint in the North Central Region of the United States.

"We are delighted to add another high-performing store to serve our customers in the North Central Region," said Bryan DeBoer, Lithia Motors and Driveway's President and CEO. "This acquisition improves our brand mix and ability to complete in-home and in-network solutions throughout their entire vehicle ownership lifecycle."

Lithia Motors has the broadest coast-to-coast automotive retail network in the nation, reaching over 92% of the United States. The Ramsey acquisition is expected to add $100 million in revenue, bringing the company's total network expansion to over $3.5 billion in annualized revenue thus far in 2020. Lithia Motors financed this transaction using capital recently raised in concurrent equity and debt offerings that closed in early October.

In addition to expanding Lithia's network, Ramsey Subaru & Mazda also strengthens its corporate responsibility initiatives--particularly in community enrichment. The dealership recently received the 2020 Subaru Love Promise Community Commitment Award. This award nationally recognizes Subaru retailers who are making the world a better place by supporting causes in local communities. These efforts focus on important areas, such as the environment, health, education, and pets. "We are extremely excited to have a team with this much passion for their communities join the Lithia family," said DeBoer.