Lithia & Driveway to Form Strategic Partnership with Pinewood Technologies and Acquire Pendragon PLC's Fleet Management and UK Motor Divisions
MEDFORD, Ore., Sept. 18, 2023 /PRNewswire/ -- Lithia & Driveway (NYSE: LAD, "Lithia") announced today that it intends to enter a strategic partnership with Pinewood Technologies and acquire the UK motor and fleet management divisions of Pendragon plc ("Pendragon"), the UK's third largest automotive dealership group. This acquisition will round out Lithia's presence in the UK market and is expected to generate over $4.5 billion USD in annual revenues.
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"The strategic partnership with Pinewood Technologies and acquisition of Pendragon's UK motor and vehicle management divisions is a massive step in delivering on our longer-term growth strategy. We are excited about the great potential in Pinewood's offering and envision our strategic partnership to further expand this SaaS business globally. Additionally, the proposed acquisition presents a highly synergistic growth opportunity with our existing UK presence with Jardine Motors Group; provides a new adjacency with PVM; and expands our brand and geographic footprint while serving to further strengthen our existing OEM relationships. This transformative transaction provides key strategic components for LAD to achieve its previously stated goal of $2.00 of EPS for every $1 Billion in revenue in the future."
Bill Berman, Chief Executive of Pendragon PLC added:
The cash consideration for the strategic partnership with Pinewood Technologies and acquisition of the UK motor and fleet management divisions of Pendragon is approximately $350 million USD (£280 million GBP). Post-completion, Lithia would have estimated annualized revenues of over $38 billion USD. The acquisition is planned to be financed using existing on-balance sheet capacity. Goldman Sachs & Co. LLC is serving as exclusive financial advisor and Latham & Watkins LLP is serving as legal advisor to Lithia for the transaction.
About Lithia & Driveway (LAD)
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SOURCE Lithia Motors, Inc.
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