Lithia Motors & Driveway today announced it has acquired The Suburban Collection in Troy. The acquisition is Lithia’s first major platform in its North Central region and is expected to add $2.4 billion in annualized revenue.
The transaction brings Lithia’s total expected annualized revenue acquired to $6.5 billion since the launch of its five-year plan to reach $50 billion in revenue and $50 of earnings per share in July 2020. The sales price was not disclosed.
Lithia Motors & Driveway, which is listed on the New York Stock Exchange, states it has now completed six of the eight largest acquisitions in the industry and is outpacing the plan’s $4 billion annual target by more than 60 percent.
Suburban Motors was founded in 1948 as a single Oldsmobile dealership in Birmingham by the late Richard “Dick” Fischer, and since that time has grown to more than 34 locations, with 2,250 team members representing 33 automotive brands.
“The Suburban Collection is a leader in the Midwest automotive retailing sector and a respected fixture in its local communities for more than 70 years,” says Bryan DeBoer, president and CEO of Lithia Motors & Driveway. “David Fischer Jr. and his father, David T. Fischer, have earned a phenomenal reputation over those seven decades for taking excellent care of their customers, team members, and local communities. We are pleased that David Fischer, Jr. will join our team leading and continuing to expand the Suburban Collection footprint in the North Central region. We welcome the entire Suburban team to the Lithia and Driveway family.”
The acquisition includes all 56 Suburban Collection franchises, making today’s announcement one of the largest number of franchises ever sold in a strategic transaction. “Lithia was once again pleased to work with the Presidio Group, who represented the Fischer family and played a key role in the success of this historic transaction,” says DeBoer. “The franchise mix is perfectly suited for Lithia & Driveway’s North Central region and provides a massive platform to build on.”
The Suburban Collection is the 12th largest privately owned dealership group in the U.S. based on revenue, and is in the strongest domestic market serving the U.S. auto industry employee base. The transaction was financed using most of the remaining capital raised in concurrent equity and debt offerings late last year.
As Lithia enters its 75th year in operation, the latest acquisition marks the auto industry’s continued consolidation with the combination of two companies founded in the 1940s. The Lithia and Suburban organizations have the ability to further leverage its network, data, technology, and team members through its Driveway Brand.
Lithia Motors & Driveway is a leading provider of personal transportation solutions in the U.S. and are among the fastest-growing companies in the Fortune 500 (#6 on 10-Year EPS Growth, #4 10-Year TSR in 2020).
The company is based in Medford, Ore., located 270 miles south of Portland.