Lithia Motors, Inc. [NYSE: LAD] revealed Tuesday that it has bought one of the largest Honda dealerships. The firm announced the acquisition of Planet Honda and situated in Union.
Shares of Lithia Motors plunged -1.73% as it lost -6.69 during the pre-market trading session of Tuesday. In the past 52-weeks of the trading session, the share of the firm went up 314.64% and -7.37% during the past 52-weeks of low and high, respectively. Lithia Motors has a total market capitalization of $10.16 billion at the time of writing.
Lithia Motors is expecting that this acquisition is accretive as it is anticipating revenue in excess of $200 million. This investment brings LAD’s total annualized earnings obtained to over $6.7 billion since the rollout of its five-year plan ten months ago.
The firm is striving to speed up the process of buying and is trying to achieve the traget of generating $4 billion in yearly revenue each year. Lithia Motor is forecasting that 2021 will be a sucessful year for the firm.
The firm is moving ahead towards its five-year plan of $50 billion in revenue and $50 earnings per share. This deal was funded utilizing free cash flow and current on-balance sheet potential.
Furthermore, this acquisition will further reinforce the capacity to assist alliances throughout the New York and New Jersey metropolitan areas.