That would mean Lithia has to acquire dealerships representing about $800 million more in revenue this year.
“This deal seems in line with management’s strategy of prioritizing accretive M&A in this market,” Stephens Inc. analyst Daniel Imbro wrote in a June 13 note to investors.
Ellmer, who stayed on with Lithia and remains CEO of Priority Auto, separately retained two Lexus stores, Tom Dobry, Lithia’s vice president of strategic operations, confirmed to Automotive News in an email.
A Lithia spokesperson said Ellmer reached out to the company directly and no brokers were involved in the transaction.
The acquisition, which also included two buy-here, pay-here dealerships, two vehicle buying centers and a certified used-vehicle store, bolsters Lithia’s presence in Virginia, which the auto retailer considers part of Region 5, the Northeast. It had just two dealerships in Virginia, representing luxury and exotic brands, near Washington, D.C.
Priority’s stores are spread across the Chesapeake, Hampton and Newport News, Va., markets, plus near Washington, D.C. It also has one location in the southwest part of Virginia.
