Lithia Motors Buys Downtown Los Angeles Auto Group

Lithia Motors said on Tuesday it has acquired Downtown Los Angeles Auto Group (DTLA) for an undisclosed sum and raised its FY earnings guidance. The company said the acquisition deploys about half of the $300 million raised in a recent senior notes offering. DTLA, comprised of Audi, Mercedes-Benz, Nissan, Porsche, Toyota, and Volkswagen stores located in downtown Los Angeles and a Nissan store in nearby Carson, would add to Lithia’s DCH, Carbone and the Baierl Auto Group to further diversify its operations.

Lithia said DTLA can generate $1 billion in revenue and $0.55 in earnings per share on a forecasted annualized basis, leading it to increase its 2017 guidance to a range of $8.55 to $8.70 per share from $8.35 and $8.50 last month. Analysts have been expecting FY EPS of $8.43 for the year.

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