MEDFORD, Ore. - Lithia Motors Inc. last week signed an agreement to acquire two Nevada dealerships for $12.8 million in cash and notes. The transaction is expected to become final the fourth quarter of this year.
Dick Donnelly Automotive of Reno, Nev., establishes a Nevada presence for Lithia. Its two stores in Reno and Sparks sell Isuzu, Lincoln-Mercury, Suzuki and Audi, and have combined annual revenues of $78 million. Donnelly sold 1,738 new and 2,704 used vehicles in 1996.
The transaction will give Medford, Ore.-based Lithia a total of 15 locations in California, Oregon and Nevada selling 21 brands. Lithia will hold 40 franchises.
Dick Donnelly, owner of the stores, will continue to run the stores with his current staff after the acquisition. 'Dick Donnelly shares many of our core operating philosophies, and has achieved outstanding sales levels for the four brands,' said Sidney DeBoer, chairman of Lithia.