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Lithia Motors buys 8 Downtown Los Angeles Auto Group dealerships for roughly $150M
Auto giant closed on a deal to acquire an arm of Shammas Group
Oregon-based auto giant Lithia Motors closed this week on a deal to buy Downtown Los Angeles Auto Group. The acquisition gives the company ownership of eight Downtown car dealerships in addition to one in Carson, the Los Angeles Downtown News reported.
The sale price was roughly $150 million, according to a release from Lithia CEO Bryan DoBear, who said the deal deployed “approximately half of the $300 million raised in our recent senior notes offering.”
The Auto Group was an arm of the Darryl Holter-led property company Shammas Group. In selling the Auto Group, Shammas sold all of its dealership holdings except for one. It is hanging onto the oldest, Felix Chevrolet, which was founded in 1921.
The sale of Group gives Lithia ownership of the Downtown L.A. Motors Mercedes, Porsche of Downtown L.A., Audi of Downtown L.A., Toyota of Downtown L.A., Volkswagen of Downtown L.A., Nissan of Downtown L.A., and Carson Nissan.
Elay Sung, the former COO of the Auto Group, will continue to oversee local dealership operations for Lithia Motors as “platform vice president,” the News reported.
Kerrigan Advisors represented the Auto Group in the sale. [LADTN] — Hannah Miet