Lithia Motors Inc., in one more transaction supporting its aggressive enlargement program, mentioned Tuesday it obtained Canadian dealership team Pfaff Automotive Companions.
The announcement confirms the imminent offer initially noted by Automotive News in July.
Phrases of the transaction have been not disclosed, but a Pfaff spokesman said the Canadian group retains an undisclosed equity stake in the procedure. The deal shut Monday.
It marks Lithia’s 1st global acquisition as the second-major U.S. dealership team also targets a purpose of 500 domestic places. Lithia said the acquisition will deliver its predicted 2021 annualized profits from acquisitions to $5.9 billion. The Canadian dealerships are expected to deliver more than $1 billion of that for Lithia, headquartered in Medford, Ore. The offer was financed with “current on-balance sheet capability,” Lithia claimed.
Pfaff, headquartered in Toronto, operates 16 dealerships across Canada — 11 of them in the Toronto spot, the biggest industry in the state. It also has stores in Vancouver, British Columbia, and Calgary, Alberta. Pfaff’s Mercedes-Benz and Harley-Davidson dealerships had been not part of the acquisition.
“Canada has been our best target for development outside the house of the United States with its similar small business techniques and a industry prospect of 5 million new and utilized automobiles marketed each year,” Lithia CEO Bryan DeBoer reported in a assertion. “Over and above its sizing, Pfaff has an superb management staff, and its locations give an best hub for even further enlargement.”
DeBoer praised Pfaff’s best-price tag-1st approach and captive in-property leasing possibility, stating Pfaff “perfectly aligns with our engineering-enabled on the web choices.”
The acquisition of Pfaff would make Lithia the 2nd publicly traded dealership group running in Canada. AutoCanada, primarily based in Edmonton, Alberta, was the sole general public dealership group in the place.
The Pfaff brand will continue being, and Chris Pfaff, whose father, Hans, established the organization in 1964, will keep on to provide as president and CEO. A Pfaff spokesman explained the whole management staff will continue to be on board to operate the brand.
The deal also usually means Lithia will deliver its Driveway omnichannel electronic retailing system north of the border.
DeBoer beforehand stated that early learnings from Driveway, rolled out one year ago, display the likely for the platform to dominate equally “domestically and internationally.”
Omnichannel refers to know-how and procedures aimed at offering a seamless shopping for practical experience for consumers whether they shop on the web, in-keep or both of those.