Lithia Motors Inc., in a further transaction supporting its aggressive growth plan, mentioned Tuesday it obtained Canadian dealership group Pfaff Automotive Partners.
The announcement confirms the imminent offer to start with described by Automotive News in July.
Phrases of the transaction ended up not disclosed, but a Pfaff spokesman said the Canadian group retains an undisclosed equity stake in the procedure. The deal closed Monday.
It marks Lithia’s initially international acquisition as the second-biggest U.S. dealership group also targets a aim of 500 domestic spots. Lithia stated the acquisition will deliver its envisioned 2021 annualized profits from acquisitions to $5.9 billion. The Canadian dealerships are anticipated to create additional than $1 billion of that for Lithia, headquartered in Medford, Ore. The offer was financed with “existing on-stability sheet capacity,” Lithia claimed.
Pfaff, headquartered in Toronto, operates 16 dealerships across Canada — 11 of them in the Toronto location, the biggest marketplace in the state. It also has shops in Vancouver, British Columbia, and Calgary, Alberta. Pfaff’s Mercedes-Benz and Harley-Davidson dealerships ended up not aspect of the acquisition.
“Canada has been our top target for progress outside of the United States with its very similar company methods and a industry option of five million new and utilised autos sold annually,” Lithia CEO Bryan DeBoer claimed in a statement. “Further than its sizing, Pfaff has an outstanding administration crew, and its destinations give an ideal hub for even further expansion.”
DeBoer praised Pfaff’s best-rate-first method and captive in-household leasing possibility, indicating Pfaff “perfectly aligns with our technological know-how-enabled on the web offerings.”
The acquisition of Pfaff will make Lithia the second publicly traded dealership group working in Canada. AutoCanada, based in Edmonton, Alberta, was the sole community dealership team in the country.
The Pfaff brand name will continue to be, and Chris Pfaff, whose father, Hans, founded the organization in 1964, will proceed to serve as president and CEO. A Pfaff spokesman explained the whole administration staff will remain on board to operate the manufacturer.
The deal also implies Lithia will convey its Driveway omnichannel digital retailing platform north of the border.
DeBoer earlier explained that early learnings from Driveway, rolled out a single 12 months back, reveal the opportunity for the system to dominate both “domestically and internationally.”
Omnichannel refers to technological know-how and procedures aimed at giving a seamless getting knowledge for people regardless of whether they store on the net, in-retail store or both of those.