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Stock Market & Financial Investment News

News Breaks
June 15, 2014
14:55 EDTLADLithia Motors to acquire DCH Auto Group
Lithia Motors and DCH Auto Group Limited have entered into a definitive agreement to combine their companies. In the transaction, Lithia will acquire 100% of the outstanding shares of DCH Auto Group , one of the 10 largest dealer groups in the country, for an estimated price of approximately $340M in cash and $22.5M, or approximately 300,000 shares of Lithia common stock. Upon closing, DCH's 27 stores, located in Southern California, New Jersey and New York, will be combined with Lithia's 101 stores in the Western United States. The DCH stores are estimated to generate approximately $2.3B in annualized revenue, and are expected to increase 2014 earnings per share by approximately 12c to 14c, excluding acquisition costs. On an annualized basis, the DCH stores are expected to increase earnings per share by 65c to 75c. The transaction is expected to be funded through the expansion of Lithia's existing credit facility by $600M, mortgage financing of $200M, and available cash flows from operations. It is targeted to close in Q414, and is subject to customary approval conditions. Lithia expects to incur pre-tax costs associated with the transaction of approximately 4c to 6c per share in 2014.
News For LAD From The Last 14 Days
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December 22, 2014
16:25 EDTLADGlenview Capital Management reports 5.92% passive stake in Lithia Motors
December 12, 2014
09:01 EDTLADLithia Motors price target raised to $100 from $86 at Craig-Hallum
Craig-Hallum raised Lithia Motors price target to $100 following last week's investor meeting. The firm said DCH synergies are bigger than expected and there is considerable room for corporate overhead costs to be taken out. Shares are Buy rated.

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