It’s official: Canadian dealership group Pfaff Automotive Companions, of Toronto, has been acquired by U.S.-based Lithia Motors, confirming information of the approaching deal first reported by Automotive Information Canada in July.

Monetary phrases of the transaction made public Tuesday weren’t disclosed. However, a Pfaff spokesman mentioned the Canadian group retains an undisclosed fairness stake within the operation, noting Lithia owns the bulk stake.

It marks Lithia’s first worldwide acquisition and strikes the second-largest U.S. dealership group towards its purpose of 500 places.

Pfaff, headquartered in Toronto, operates 16 dealerships throughout Canada — 11 of them within the Larger Toronto Space, the most important market within the nation. It additionally has shops in Vancouver and Calgary. The Canadian dealerships are anticipated to generate greater than US$1 billion in annualized revenues for Lithia, headquartered in Medford, Ore.

“Canada has been our high goal for development outdoors of america with its related enterprise practices and a market alternative of 5 million new and used vehicles bought yearly,” Lithia CEO Bryan DeBoer mentioned in a press release. “Past its measurement, Pfaff has a superb administration group, and its places present a super hub for additional growth.”

DeBoer praised Pfaff’s best-price first strategy and captive in-house leasing possibility, saying Pfaff “completely aligns with our technology-enabled on-line choices.”

The acquisition of Pfaff makes Lithia the second publicly traded dealership group working within the Canadian market. AutoCanada, based mostly in Edmonton, Alta., was the only real public dealership group in Canada.

The Pfaff model will stay, and Chris Pfaff, whose father Hans based the corporate in 1964, will proceed to function president and CEO. A Pfaff spokesman mentioned the whole Pfaff administration group will keep on board to run the model.

The deal additionally means Lithia will carry its Driveway omnichannel digital retailing platform north of the border.

DeBoer beforehand mentioned that early learnings from Driveway, rolled out one 12 months in the past, exhibit the potential for the platform to dominate each “domestically and internationally.” 

Omnichannel refers to know-how and processes geared toward offering a seamless shopping for expertise for customers whether or not they store on-line, in-store or each.

Pfaff mentioned in a press release there at present isn’t a “nation-wide, e-commerce participant in Canada.”

“[W]hich is why we consider this partnership will ship a first-mover benefit in buying extra places and deploying [Lithia’s] modern, digital platforms throughout this nation,” Pfaff mentioned. “This partnership is borne out of a relationship that spans 5 years, and we’re assured that the cultural alignment between our organizations makes this the right launch level for Lithia & Driveway in Canada,” mentioned Christopher Pfaff, president and CEO of Pfaff Automotive Companions. “At present, there isn’t any nation-wide, e-commerce participant in Canada, 

With a market cap of US $11.55 billion ($14.36 billion) — and 263 dealerships in its portfolio previous to the Pfaff deal, in line with the corporate’s web site — Lithia has higher entry to capital for growth than each different dealership group in Canada by a large margin.

Lithia ranked No. 3 on Automotive Information’ most up-to-date listing of the highest 150 dealership teams based mostly within the U.S., with retail gross sales of 171,168 new autos in 2020. However with its April acquisition of 34 shops from Michigan’s Suburban Assortment, Lithia handed Penske to develop into the nation’s second-largest dealership group.

With recordsdata from Automotive Information and Automotive Information Canada.