Lithia Motors Inc. is preparing to close a deal to acquire The Suburban Collection. As first reported by CBT News, plans for the transaction were made public on January 30, 2021. The acquisition had been pending board and stakeholder approval since early in the year.
The transaction will mark one of the largest dealership acquisitions in the past decade, while expanding Lithia’s footprint in the Midwest. In Automotive News‘ recent annual list of the top 150 dealership groups, Lithia Motors came in at number 1 on the list of top 10 number of dealerships added in the U.S. The group also ended up ranking number 3 overall on the top 150 list.
Suburban Collection dealerships in Michigan closed Saturday, April 10 through 1 p.m. April 12 for “necessary system updates”. According to sources, the stores will be reopened on Monday under Lithia ownership.
The Suburban Collection is comprised of 35 automobile brands in 52 locations throughout Michigan, California, and South Florida. When the deal officially closes, The Suburban Collection dealerships could bring Lithia’s U.S. rooftop count up to 258.
Officials from both companies have declined to comment on the details of the transaction.
The pending acquisition will bring Lithia closer to achieving its five-year goal of achieving $50 billion in revenue. Since announcing its plan last July, Lithia has purchased dealerships accounting for $4 billion in annualized revenue. The growing retailer is expected to close on dealerships generating $7 billion in annualized revenue this year, acquiring seven dealerships in Florida and one in Arizona.
The Suburban Collection deal will be Lithia’s largest transaction since 2014 when the retailer purchased DCH Auto Group Inc., which included 27 stores and nearly $2.3 billion in annualized revenue.
Update: Lithia Motors has confirmed the acquisition of The Suburban Collection in a press release Tuesday morning. The transaction is expected to add $2.4 billion in annualized revenues for the retailer.
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