Lithia Motors Inc. has entered the state of Alabama, acquiring Koby Subaru in Mobile, as it continues to add dealerships in the Southeast — a key region in its expansion plans and where the retailer has the fewest number of stores.
The nation's second-largest dealership group bought the store July 12 from Roger Koby, according to Haig Partners, a buy-sell firm in Fort Lauderdale, Fla., which represented the seller in the transaction.
Lithia said Tuesday that it has renamed the store Subaru of Mobile. Terms weren't disclosed, but Lithia said it paid for the dealership using existing balance sheet funding.
The retailer said the Koby Subaru acquisition and last month's purchase of Michael's Subaru of Bellevue in Washington combined would add an expected $155 million in annual revenue.