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Medford auto retailer acquires 85-year-old Carbone Auto Group Tuesday Sep 13, 2016 at 11:05 AM Sep 13, 2016 at 5:04 PM Greg Stiles Mail Tribune @GregMTBusiness Lithia Motors has added to its Northeast U.S. holdings with the acquisition of Carbone Auto Group in New York and Vermont. Although terms of the deal were not released, the acquisition is the largest for the Medford-based auto retailer since it bought 27 DCH dealerships in New York and Southern California markets for $362.5 million in June 2014. Carbone, ranked the 94th largest auto group in the country by Automotive News, generates close to $600 million in annual revenue. Lithia estimated the purchase will add 20 to 25 cents-per-share earnings during 2017. The acquisition, which closed Monday, boosts Lithia's holdings to 150 stores in 16 states. Lithia CEO Bryan DeBoer said Tuesday that the transaction essentially created a new regional division capable of expanding into additional markets. "We believe Carbone could be Lithia's presence in small and medium markets throughout the region," DeBoer said. "Our preference is to find groups with similar values as us. Then you don't use talent resources that are already within your organization. You can grow two-fold, using the people within a group and using yours to grow other ways." Growth opportunities throughout New England in locales such as Portland, Maine, or Burlington, Vt., are now within reach, he said. "In automotive retail you spend years developing brand reputation," DeBoer said. "If you've got a good reputation like DCH and Carbone, and Lithia in Oregon, it perpetuates a long time through generations of customers." Lithia jumped from No. 8 to No. 5 on Automotive News’ list of the top 150 dealership groups in 2015, selling 137,486 new vehicles. The auto retailer said it will rework nine present Carbone stores into 13 — two locations each of Honda, Subaru and Ford and one store each of Toyota, Chevrolet, GMC Buick Cadillac, Chrysler Jeep Dodge Ram, Nissan, Hyundai and BMW. "Some of the stores have multiple manufacturers under the same roof," DeBoer said. "We believe it's best to have an exclusive experience." CEO Enessa Carbone, whose grandfather founded the organization 85 years ago, will continue to oversee the Carbone Auto Group. The organization is based in Yorkville, N.Y., and employs about 650 people in upstate New York locations in Yorkville, North Utica, Amsterdam and Troy, along with Bennington, Vt. Earlier this month, Lithia announced it was awarded a Volkswagen franchise in Freehold, N.J. The company said DCH Volkswagen of Freehold is expected to generate $35 million in annual revenue. In August, Lithia acquired Kemp Ford in Thousand Oaks, Calif., and renamed it DCH Ford of Thousand Oaks. The company projects it will add $65 million in annual revenue. Armed with cash and financing resources, Lithia could announce more deals before the third quarter ends Sept. 30, but DeBoer declined to elaborate. "There could be more," he said. "We've got a full pipeline, that's for sure." Reach reporter Greg Stiles at 541-776-4463 or [email protected]. Follow him on Twitter at www.twitter.com/GregMTBusiness, on Facebook at www.facebook.com/greg.stiles.31.