Lithia & Driveway (NYSE: LAD) announced the acquisition of Rockwall Hyundai in Rockwall, Texas, for approximately $75 million. The deal was financed using the retailer's existing on-balance sheet capacity, the company said.
Rockwall Hyundai is expected to add roughly $75 million in annualized revenue once operational. The transaction raises Lithia's total year-to-date expected annualized revenue from acquisitions to $915 million.
Bryan DeBoer, president and CEO, said the acquisition "reflects our disciplined and strategic approach to expansion." The deal extends the retailer's presence beyond its current footprint, which spans markets including Dallas-Fort Worth, Houston, Austin, Corpus Christi, San Antonio and West Texas.
In other capital-allocation activity, Lithia said it invested $40 million during the current quarter to repurchase approximately 108,000 shares at a weighted-average price of $375, representing about 0.46% of outstanding shares. Year to date, the company has spent $541 million on buybacks, acquiring roughly 1.9 million shares at a weighted-average price of $284 — equal to about 8.1% of outstanding shares. The retailer has $580 million remaining under its existing share-repurchase authorization.
Lithia & Driveway, headquartered in Medford, Oregon, is marking its 80th year in business in 2026.
