Back to top

Image: Bigstock

Lithia (LAD) Acquires Jardine to Expand into United Kingdom

Read MoreHide Full Article

With the acquisition of Jardine Motors Group, Lithia (LAD - Free Report) makes its way into United Kingdom. Jardine is one of the leading auto retailers with its presence over more than 50 premium retail locations in United Kingdom. The Group has a strong track record and market position in the country, representing the premium car brands Audi, Mini, BMW, Aston Martin, McLaren, Aston Martin, Mercedes-Benz, Porsche, Jaguar Land Rover and Ferrari. Jardine is expected to generate more than $2 billion annualized revenues.

"Jardine's complementary leadership team, business model, sound financial performance and excellent OEM relationships make this group the ideal partner for our expansion into the United Kingdom. As part of our broader growth plan, we firmly believe the combination of our two businesses will deliver significant value for employees, partners and customers alike," said Bryan DeBoer, president and CEO of Lithia Motors.

With this buyout, Lithia has acquired more than  $2.1 billion in annualized revenue so far this yearsetting the stage foranother solid year of acquisition growth. Last year, the company had acquired more than $3.5 billion in annualized revenues.

Lithia’s diversified product mix and multiple streams of income reduce its risk profile and position it for long-term top- and bottom-line growth. Despite current macroeconomic headwinds and industry challenges, the company believes that it is well placed to generate $50 billion in revenues and $55-$60 in earnings per share by 2025 through strategic acquisitions.

Zacks Rank & Key Picks

LAD currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank stocks here.

A few top-ranked players in the auto space include Volvo (VLVLY - Free Report) , Wabash National (WNC - Free Report) and Modine Manufacturing (MOD - Free Report) , all of which sport a Zacks Rank #1 (Strong Buy).

The Volvo Group is a manufacturer of trucks, buses, construction equipment, diesel engines and marine and industrial engines. The Zacks Consensus Estimate for VLVLY’s 2023 earnings imply year-over-year growth of 6.25%.

Wabash is one of the leading manufacturers of semi-trailers in North America. The Zacks Consensus Estimates for WNC’s 2023 sales and earnings imply year-over-year growth of 13.06% and 28.89%, respectively.

Modine operates primarily in a single industry consisting of the manufacture and sale of heat transfer equipment. The Zacks Consensus Estimates for MOD’s 2023 sales and earnings imply year-over-year growth of 11.43% and 43.09%, respectively.


Zacks' 7 Best Strong Buy Stocks (New Research Report)


Valued at $99, click below to receive our just-released report
predicting the 7 stocks that will soar highest in the coming month.


Click Here, It's Really Free

Published in