Lithia & Driveway Acquires Stohlman Subaru, Boosting Revenue

Lithia & Driveway (LAD) strengthens its presence in the Mid-Atlantic by acquiring Stohlman Subaru, which adds $80 million in expected annualized revenue. The acquisition is financed through existing resources, signaling robust growth.

Date: 29-01-2025

AI Rating: 7

Acquisition Impact on Revenue Growth: The acquisition of Stohlman Subaru will contribute an expected $80 million in annualized revenue to Lithia & Driveway (LAD). This is a significant boost that reflects the company’s strategic initiative to enhance its market presence in the automotive sector.

Financing Through Existing Resources: The acquisition is financed using existing resources, indicating that Lithia & Driveway has existing liquidity, which can be seen positively by investors. This implies financial stability and the ability to invest in growth without needing to incur additional debt.

LAD's stock closed at $367.88, with a 3.40% increase on the New York Stock Exchange, reflecting positive investor sentiment following the acquisition announcement.

Stocks: LAD