Driving the news: Lithia Motors $LAD ( ▲ 0.0% ) has acquired three Hyundai dealerships in Orange County, including Anaheim Hyundai, Huntington Beach Hyundai, and Garden Grove Hyundai, from Nouri/Shaver Automotive Group, according to a press release.
For context: The deal increases Lithia's import mix and network density in Southern California, while adding an estimated $440 million in annualized revenue.
Year-to-date, Lithia’s U.S. acquisitions are expected to add $1.16 billion in annualized revenue.
Nouri/Shaver now operates 13 locations across California and Oregon, retaining one Hyundai dealership in California after the sale.
What they're saying: "These highly profitable acquisitions increase our brand diversity and bring thousands of new customers into our unique ecosystem," said Lithia President and CEO Bryan DeBoer. "This accretive investment reflects our strict capital discipline and commitment to our return hurdles and supports our strategy to both return value to shareholders and expand our platform's reach."
Bryan DeBoer
Big picture: Lithia is scooping up Hyundai stores in Orange County to maximize market coverage and operational leverage, which is not an uncommon strategy among large, public dealership groups.
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