Lithia & Driveway Enters into a Strategic Partnership with Pinewood Technologies and Completes Acquisition for Pendragon PLCs Fleet Management and UK Motor Divisions
MEDFORD, Ore., Feb. 1, 2024 /PRNewswire/ -- Lithia & Driveway (NYSE: LAD) announces today that it has completed the transaction with Pendragon PLC ("Pendragon", to be renamed Pinewood Technologies Group PLC "Pinewood Technologies") acquiring the UK motor and fleet management divisions of Pendragon, the UK's third largest automotive dealership group and forming a strategic partnership with Pinewood Technologies.
LAD's UK operations will expand their digital capabilities by integrating the Pinewood technology platform across all locations and will co-develop automotive technology solutions to capitalise on the North American market opportunity through a joint venture. Pinewood's dealer management software remains listed on the London Stock Exchange under the name Pinewood Technologies plc and will become a pure-play software-as-a-service (SaaS) business.
LAD's acquisition of Pendragon Vehicle Management ("PVM") adds a highly profitable fleet management services business, and the UK motors business expands the brand and geographic footprint rounding out the reach and density of the network in the UK market. These additions build on the final adjacencies contemplated in the company's strategic design outlined in 2020 and growth in the United Kingdom.
Bryan DeBoer, Lithia & Driveway President and CEO, said:
"Today marks the formal completion of our investment in Pinewood and Pendragon. This begins an exciting new chapter in our long-term growth strategy, as we turn our efforts to 2024 and beyond, executing and demonstrating the power of what the Lithia & Driveway ecosystem can and will produce. We look forward to delivering on the significant potential in this new partnership, adding $4.5B in revenue, entering the fleet management space and welcoming our new colleagues to the Lithia & Driveway family."
The UK motor and fleet management divisions will report to Neil Williamson, Lithia's UK Regional President, who has led the rapid and seamless integration of Jardine Motors Group since March 2023 and the addition of two BMW stores in Maidstone and Tunbridge Wells in August 2023.
Neil Williamson, Lithia UK Regional President, commented:
"Our investment in Pendragon expands our footprint into Wales and Scotland, while serving to increase our brands, markets, and density in existing locations. This increased footprint, alongside the integration of Pendragon Vehicle Management and migration to a single technology platform with Pinewood, establishes Lithia as a diversified, innovative, and scaled UK presence with significant advantages to peers. We look forward to working with our new talented colleagues and OEM partners in the pursuit of providing transportation solutions wherever, whenever, and however customers desire."
These additions strengthen Lithia's presence in the UK market and is expected to generate over $4.5 billion USD in annual revenues. The transaction reflects Lithia's commitment to invest in the evolving UK automotive industry.
About Lithia & Driveway (LAD)
Lithia & Driveway (NYSE: LAD) is one of the largest global automotive retailers providing a wide array of products and services throughout the vehicle ownership lifecycle. Convenient and hassle-free experiences are offered through our comprehensive network of physical locations, ecommerce platforms, captive finance solutions and other synergistic adjacencies. We deliver consistent, low-risk, and profitable growth in a massive and unsolicited industry. Our highly diversified and competitively differentiated design provides us the flexibility and scale to pursue our vision to modernize personal transportation solutions wherever, whenever, and however consumers desire.
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SOURCE Lithia Motors, Inc.