Lithia & Driveway (LAD) is making moves, this time revving up its engines in the Southeast. The auto retailer has announced the acquisition of two Mercedes-Benz dealerships, strategically planting its flag in Collierville, Tennessee, and Jackson, Mississippi. This marks LAD’s inaugural foray into the Mercedes-Benz market within the region.
The deal is expected to accelerate revenues, adding a projected $220 million in annualized revenue. This acquisition boosts LAD’s total acquired revenue for the year to $400 million, a testament to its aggressive growth strategy. The company funded the purchase using existing balance sheet capacity, a sign of financial discipline.
Beyond acquisitions, LAD is also signaling confidence in its own stock. The company updated its share repurchase program, revealing an investment of $230 million to repurchase approximately 729,000 shares. These shares were acquired at an average price of $315, representing a sizeable 2.8% of the outstanding shares. This shows the management’s commitment to shareholder value.
With $589 million still authorized under its current repurchase program, LAD maintains a balanced approach, blending strategic acquisitions with share repurchases. It’s a smart combination, potentially fueling future growth while also returning capital to shareholders, a strategy that many investors appreciate.
Original article, Author: Jam. If you wish to reprint this article, please indicate the source:https://aicnbc.com/2165.html
