Document text
Lithia adds Pittsburgh group to fold Tuesday Feb 27, 2018 at 5:04 PM Feb 27, 2018 at 5:20 PM Greg Stiles Mail Tribune @GregMTBusiness Making good on its promise that deals were in the pipeline, Lithia Motors has reeled in a second Pittsburgh dealership group. The Medford-based auto retailer Tuesday announced completion of a deal that began taking shape not long after its first western Pennsylvania acquisition last May. Day Automotive Group, based in Pittsburgh suburb Monroeville, will add an estimated $340 million in annual revenue for Lithia. Terms of the purchase were not announced. “This acquisition rounds out our presence in Pittsburgh, adding stores in the desirable southeastern metro area to complement our locations in affluent Cranberry Township," CEO Bryan DeBoer said in a statement. "We continue to see a robust acquisition environment and anticipate more acquisitions in the near term." Lithia is the fourth-largest dealership group in the nation, according to Automotive News. Day Automotive Group ranked No. 128. The Mail Tribune reported Feb. 14 the transaction had been cleared by the Federal Trade Commission Earlier this month, Day sold a Toyota dealership in Pleasant Hills to Ganley Automotive Group, the biggest car dealership in Ohio. Shawn Kukic, a Lithia group vice president, told the Pittsburgh Business Journal the auto retailer continues to work on deals. “Absolutely, we’re continuing to inspect opportunities that would possibly strengthen our network." Included in the deal are: Day Chevrolet, Day Centennial Chevrolet, Day Audi, Day Volkswagen, Day Ford, Day West Liberty Subaru, Day Apollo Subaru and Day Apollo Volkswagen. The Volkswagen and Audi franchises, presently under one roof, will be separated. During 2017, Lithia purchased 18 stores and opened one new store. The company paid $349.4 million, net of floor plan debt. In a Securities and Exchange filing this week, Lithia reported it paid $26.2 million for Ray Laks Honda, in Orchard Park, New York, and Ray Laks Acura, in Buffalo, in a deal closed Jan. 15. — Reach reporter Greg Stiles at 541-776-4463 or [email protected]. Follow him on Twitter at www.twitter.com/GregMTBusiness or www.facebook.com/greg.stiles.31.