Lithia & Driveway Improves Terms To 35.4p (Pence) Per Pendragon Share, Or £397M Total With Significant Future Upside
Portfolio Pulse from Benzinga Newsdesk
Lithia & Driveway (NYSE:LAD) has revised its agreement with Pendragon plc to acquire Pendragon's UK motor division and vehicle management division. The total cash consideration has been increased by 42% to £397 million. The deal also includes a strategic partnership with Pinewood Technologies and a North American joint venture. Lithia has obtained preliminary commitments from major automotive retailers to adopt the Pinewood dealer management systems. The acquisition will be financed using Lithia's existing on-balance sheet capacity.
October 02, 2023 | 3:09 pm
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POSITIVE IMPACT
Lithia & Driveway's revised agreement to acquire Pendragon's UK divisions and strategic partnership with Pinewood Technologies could potentially boost its growth and diversification. The deal is expected to be financed using Lithia's existing on-balance sheet capacity.
The acquisition of Pendragon's UK divisions and the strategic partnership with Pinewood Technologies could potentially boost Lithia & Driveway's growth and diversification. The increased cash consideration and the preliminary commitments from major automotive retailers to adopt the Pinewood dealer management systems also demonstrate support for the deal. The acquisition will be financed using Lithia's existing on-balance sheet capacity, which indicates that the company has sufficient funds to complete the transaction.
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