Lithia Motors Inc., the second largest dealer group in the United States, will purchase Ontario-based Pfaff Automotive Partners, according to trading advisors.
The deal marks Lithia’s first foray into Canada from the United States.Lithia CEO Brian Devoa Automotive News On Wednesday, listed retailers will acquire, among other things, Canadian dealers under contract and will close within the next 90 days. These transactions under contract are expected to add $ 2 billion in annual revenue to Lithia.
“Canada is our number one target,” DeBoer told analysts Wednesday after retailers reported their second-quarter earnings. “We have spent the last five years getting to know the dealerships there. We have fairly good relationships with most of the large groups and believe that something is imminent in that country. “
The acquisition of Pfaff makes Lithia the second public dealer group operating in the Canadian market. Auto Canada in Alberta is currently the only public dealer group in Canada.
Within the past week, Farid Ahmad, CEO of Dealer Solutions Mergers and Acquisitions, Canada’s largest trading advisory firm, has been informed to Lithia and Pfaff employees that the deal is “imminent.” Ahmad has been working with the Pfaff Group for over 25 years, hiring Lithia executives across Canada who have been exploring potential acquisitions for the past five years. He said he was informed about the deal by Pfaff’s general manager.
“It’s very exciting for Lithia to enter the Canadian market,” Ahmad said. “May open gateway for other large groups to consider [it].. “
According to the group’s website, Pfaff operates 16 dealers across Canada and represents brands such as Subaru, Audi, Mercedes-Benz, McLaren and BMW. According to the website, the luxury-heavy group also has a strong leasing portfolio, Harley-Davidson dealers, second-hand stores and body shops. The number of Pfaff stores included in the pending transaction with Lithia is not clear.
A Pfaff Group spokesman declined to comment, saying, “We have many business units and are constantly looking for new opportunities, but we will not comment until the transaction is complete.”
A Lithia spokeswoman said Automotive News The company will not comment on the acquisition until the acquisition is complete.
http://feedproxy.google.com/~r/autonews/BreakingNews/~3/vLk4uwlkDYQ/lithia-buy-canadian-dealerships-pfaff-automotive-partners Lithia buys Canadian dealer from Pfaff Automotive Partners