Lithia Motors Inc., a publicly held chain of new-car dealerships based in Medford, Ore., has signed a final agreement to acquire two Bakersfield, Calif., dealerships for $10.6 million.
Bakersfield Nissan and Bakersfield BMW-Acura had combined sales of $41 million last year.
The acquisition will add three car lines to the chain's product mix, giving Lithia 20 makes at 13 locations in Oregon and California. The chain will hold a total of 38 franchises.
Lithia will pay for the stores in cash and notes with the seller's option at the time of closing to receive shares in lieu of the note.
The deal is expected to close this fall.
The chain just closed its acquisition of Magnussen-Barbee Ford-Lincoln-Mercury of Napa, Calif. Ford Motor Co. approved a master agreement for future acquisitions when it accepted the transaction.
Lithia opened a new body shop in Medford and added a new fast lube and expanded service desk at Medford Toyota-Lincoln-Mercury.
The body shop is one of the largest in the Northwest, with close to an acre of land under one roof.
The quick lube is Lithia's first and could serve as a prototype for fast lubes at other dealerships, said Jeffrey DeBoer, vice president of finance and investor relations.