On Monday, September 18, Lithia Motors declared that it intends to enter a strategic partnership with Pinewood Systems and obtain the Uk motor and fleet management divisions of Pendragon plc, the UK’s 3rd-greatest automotive dealership team for $310 million USD.
This acquisition will round out Lithia’s presence in the Uk sector and is expected to make more than $4.5 billion USD in annual revenues.
As section of the arrangement, the ongoing Pendragon small business, comprised of the Pinewood DMS system, will continue to be mentioned on the London Stock Trade below the identify Pinewood Systems plc and will grow to be a pure-engage in computer software as a provider (SaaS) small business.
Lithia’s Uk operations will mature its electronic capabilities by adopting the Pinewood know-how system across all places. On top of that, Lithia Motors and Pinewood Systems, through a joint undertaking, will co-produce automotive technology methods to capitalize on the North American current market possibility.
And lastly, Lithia will get 16.7% possession in the remaining Pinewood enterprise at the completion of the transaction.
“The strategic partnership with Pinewood Systems and acquisition of Pendragon’s United kingdom motor and car management divisions is a significant move in providing on our longer-term growth system,” reported Bryan DeBoer, Lithia & Driveway President and CEO in a press launch. We are enthusiastic about the fantastic probable in Pinewood’s presenting and envision our strategic partnership to further more extend this SaaS business enterprise globally.”
The transaction underlines Lithia’s programs to spend further in the evolving United kingdom automotive marketplace. Pendragon’s British isles motor and car or truck administration divisions are complementary to Lithia’s existing British isles model and geographic footprint adhering to the investment decision in Jardine Motors Group (“JMG”) in March 2023 with the merged system representing 3.6% new automobile marketplace share.
“The start of Pinewood as a standalone organization is a unique and interesting opportunity to create a greatest-in-course merchandise for clients, which we can sector globally and generate considerable benefit for our shareholders,” additional Bill Berman, Main Govt of Pendragon PLC.
Write-up-completion the put together business enterprise will report to Neil Williamson, Lithia’s British isles President who has led the speedy and seamless integration of JMG considering the fact that the investment in March 2023 and the addition of two BMW stores in Maidstone and Tunbridge Wells in August 2023.