By Powerscourt on 18/09/2023

POWERSCOURT ADVISES LITHIA MOTORS ON £280M UK INVESTMENT

Powerscourt is proud to support Lithia & Driveway (“Lithia”), one of the largest automotive dealer groups in North America, on its plans to enter a strategic partnership with Pinewood Technologies and acquire the UK motor and fleet management divisions of Pendragon PLC (“Pendragon”), the UK-based automotive trading business, for a gross aggregate consideration of £280 million.

Lithia is listed on the New York Stock Exchange, has a market capitalisation of more than $8.4bn and is among the fastest growing companies in the Fortune 500, operating from over 340 locations in three countries, employing over 24,000 staff. In March 2023 the Group announced the successful acquisition of Jardine Motors Group, its first expansion into the UK automotive market.

Pendragon PLC is one of the UK’s leading automotive retailers, working with over 20 different car manufacturers. It is listed on the London Stock Exchange and operates over 160 sites across the UK, employing over 5,000 staff.

As part of the agreement, Lithia will acquire the UK motor and fleet management divisions of Pendragon PLC while the remaining Pendragon business, comprising the Pinewood DMS platform, will remain listed on the London Stock Exchange and be renamed Pinewood Technologies PLC.

Lithia and Pinewood Technologies PLC will also co-develop automotive technology solutions via a joint venture in order to capitalise on the North American market opportunity while looking to grow the digital platform in Europe, Asia and the Middle East.

Members of Powerscourt’s Industrials and Support Services team, comprising Peter Ogden, James White and Nicholas Johnson, are supporting Lithia on the proposed transaction which remains subject to shareholder approval.

James White, Director and Head of Industrials & Support Services, said: “We are incredibly proud to be supporting Lithia on this proposed transaction.  Having supported the Group’s investment in Jardine Motors Group earlier in the year, we are delighted to be working with the team again in order to help them tell their story to a wide range of investment, corporate and internal audiences.  Moreover, this agreement demonstrates the continued confidence that international partners such as Lithia have in the UK’s capital and consumer markets and marks the latest exciting chapter in Lithia’s broader growth plans.”