Toronto, Ontario — Lithia Motors, a U.S.-based auto dealership group, reportedly has its sights set on Ontario-based Pfaff Automotive for its first Canadian acquisition, according to Automotive News Canada.
Lithia CEO Bryan DeBoer told the publication Wednesday that it has acquisitions of Canadian dealerships under contract and slated to close within 90 days—deals that could add up to US$2 billion in annual revenue to Lithia’s fold.
Lithia operates 262 dealerships in the United States, according to its website.
“Canada is our number-one target,” DeBoer told market analysts following Lithia’s second-quarter earnings call. “We’ve spent the last five years getting to know the dealer body there and have pretty good relationships with most of the large groups and believe something is imminent in that country.”
If Lithia does move to acquire Pfaff, it would make the company the second public dealership group operating in the Canadian market, after Alberta-based AutoCanada—the sole public dealership group in Canada, as it stands.
Pfaff automotive operates 16 dealerships across Canada, including a Vaughan, Ontario bodyshop. The group has not commented on the reported deal, instead telling Automotive News Canada that the company does not comment on deals until they are final.
