Lithia Motors Inc. Expands Luxury Footprint with Strategic Mercedes-Benz Acquisitions

In a significant move to bolster its luxury vehicle portfolio, Lithia Motors Inc. (NYSE: LAD) has finalized the acquisition of two Mercedes-Benz dealerships in the Southeast region, marking a pivotal expansion into the luxury market segment. The deal, facilitated by The Presidio Group, saw Lithia Motors acquiring Mercedes-Benz of Jackson in Mississippi and Mercedes-Benz of Collierville in Tennessee, along with their associated real estate. This strategic acquisition is expected to add approximately $220 million in annualized revenue to Lithia’s financials.

The transaction, completed on June 2, 2025, involved the sale of these storied dealerships by Trudy Higginbotham Moody, Wallis Higginbotham, and their family. The Higginbothams, led by Dennis Higginbotham, a veteran in the automotive retail sector, have been integral to the success of these dealerships. Moody, who has been recognized as Mississippi’s most recent TIME Dealer of the Year nominee, expressed that the decision to sell was challenging but necessary.

Bryan DeBoer, President and CEO of Lithia & Driveway, emphasized the strategic importance of this acquisition. “We are thrilled to expand our presence in the Southeast with the addition of these two premier Mercedes-Benz stores. These acquisitions align with our strategic focus on growing in high-performing regions and strengthen our luxury brand portfolio,” DeBoer stated. The move not only increases store density but also enhances Lithia’s luxury mix, bringing its total year-to-date expected annualized revenue acquired to $400 million.

In addition to the dealership acquisitions, Lithia Motors has also provided an update on its share repurchase program. To date, the company has invested $230 million to repurchase approximately 729,000 shares at a weighted average price of $315 per share, representing a 2.8% reduction in outstanding shares. With $589 million still available under the existing share repurchase authorization, Lithia Motors demonstrates a strong commitment to returning value to its shareholders.

Lithia Motors, a leader in the consumer discretionary sector, continues to leverage its robust balance sheet to finance strategic acquisitions. The company’s ability to finance these deals using existing on-balance sheet capacity underscores its financial health and strategic foresight. As Lithia Motors integrates these new assets into its omnichannel ecosystem, the company is well-positioned to capitalize on growth opportunities in the luxury automotive market.

With a market capitalization of $8.26 billion and a price-to-earnings ratio of 10.02, Lithia Motors remains a formidable player in the specialty retail industry. As the company continues to expand its footprint and enhance its luxury offerings, investors and industry observers will be keenly watching its trajectory in the evolving automotive landscape.