Lithia Motors, one of the country’s largest automotive retailers, recently purchased the Day Automotive Group in Monroeville, the Pittsburgh Post-Gazette reports. The Medford, OR-based retailer recently also acquired Baierl Automotive in Wexford.
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The acquisition includes seven dealerships and the real estate, according to Shawn Kukic, group vice president for the Pittsburgh-area Lithia stores, per a Pittsburgh Business Times report. Lithia will keep the Day brand, which has operated in the Steel City since the late 1970s.
Deborah Campbell, who owned the Day Automotive Group for several years, “will stay on to a certain extent, helping us as a consultant,” Kukic stated. “We plan to retain local store leadership and teams.”
Day had 529 employees and $401.45 million in revenue in 2016, according the Pittsburgh Business Times’ automotive dealerships rankings, where it placed third.
“We are excited to add the Day team and their strong franchise mix to our operations in Pennsylvania,” Lithia president and chief executive officer Bryan DeBoer said in a statement. “This acquisition rounds out our presence in Pittsburgh, adding stores in the desirable southeastern metro area to complement our locations in affluent Cranberry Township. We continue to see a robust acquisition environment and anticipate more acquisitions in the near term.”
The company stated that Day Automotive Group will generate an estimated $340 million in annual revenue. Currently, Lithia Motors operates 179 stores that represent 30 brands in 18 states. It had revenue of $10.1 billion last year.
Founded in 1946, Lithia was ranked the fourth-largest dealership group in the United States based on new car unit sales in 2016, according to Automotive News’ most recent figures. Meanwhile, Day Automotive ranked 128th.
The company said Day is estimated to generate $340 million in annual revenue.
Day Automotive Group recently sold a Toyota Dealership in Pleasant Hills to Ganley Automotive Group, which is the largest dealership in Ohio.
Lithia’s Baierl acquisition last year was the company’s first business dealing in Pennsylvania.
“We don’t anticipate any major changes,” Lithia chief financial officer John North said after Baierl acquisition. “Obviously, Baierl has a great reputation.”
North also noted the Baierl name would stay, and the group’s management team that operated the locations would remain with the business. There were no plans to layoff any of Bairel’s employees.
According to an Automotive News report from January, an active year is predicted for purchasing and selling car dealerships. The forecast is based on large groups’ desire to expand and smaller dealerships wanting to cash out of a business that continues to get more complex.
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