Lithia buys Toyota and Subaru dealerships near Seattle; Swickard adds Toyota store

Lithia Motors Inc. has expanded its presence in the Pacific Northwest with the purchase of the largest Toyota store in Washington state based on new-vehicle sales.

The auto retailer said the store is expected to add $235 million in annual revenue.

Lithia on Tuesday said it paid for Michael's Toyota of Bellevue, near Seattle, using funds from its balance sheet capacity. It also bought Michael's Subaru of Bellevue. Both dealerships' names will remain.

The transaction closed on Monday. Lithia bought the dealerships from Seattle-area dealer David Broadus. Erik Paulson, a minority partner and general manager at both stores, is staying on as general manager.

"This exceptional Toyota store doubles our presence and offerings in the largest automotive retail market in our northwest region," Lithia CEO Bryan DeBoer said in a statement. "We welcome Erik Paulson and his high-performing team as they continue to serve and create loyal, satisfied customers in the greater Seattle area."

Broadus also sold Magic Toyota in Edmonds, Wash., to Swickard Auto Group on Monday.

The store has been renamed Swickard Toyota, said Jeff Swickard, the group's dealer principal.

Swickard said he has a number of dealerships in the region.

"It's a high-volume Toyota dealership in the Seattle marketplace," he said. "It's a high-growth market."

Lithia said it has now acquired dealerships expected to generate $7.8 billion in annual revenue since it launched its five-year growth plan last July. The company wants to grow to $50 billion in annual revenue and $50 earnings per share. Last week, Lithia entered Mississippi with the purchase of a Toyota dealership in Jackson, while the auto retailer also sold an Audi store in California.

Lithia of Medford, Ore., ranked No. 3 on Automotive News' list of the top 150 dealership groups based in the U.S., retailing 171,168 new vehicles in 2020. But Lithia's April acquisition of Michigan's Suburban Collection makes the retailer the second-largest group going forward.

Mark Johnson and Mark Topping of MD Johnson Inc., a Enumclaw, Wash., buy-sell firm, represented Broadus in both transactions. Lithia and Swickard — which ranked No. 91 on Automotive News' top 150 dealership groups list with 10,035 new-vehicle sales last year — did not use brokers.