US dealer group Lithia & Driveway has completed its multi-million-pound acquisition of Pendragon’s dealerships and its Pendragon Vehicle Management leasing division.

Lithia said the acquisition of Pendragon Vehicle Management adds a highly profitable fleet management services business

The deal strengthens Lithia’s presence in the UK market and reflects its commitment to invest in the evolving UK automotive industry.

Lithia said the acquisition of Pendragon Vehicle Management adds a highly profitable fleet management services business, while the UK motors business expands the brand and geographic footprint, rounding out the reach and density of the network in the UK market.

Bryan DeBoer, Lithia & Driveway president and CEO, said: “This begins an exciting new chapter in our long-term growth strategy, as we turn our efforts to 2024 and beyond, executing and demonstrating the power of what the Lithia & Driveway ecosystem can and will produce. We look forward to delivering on the significant potential in this new partnership, adding $4.5bn in revenue, entering the fleet management space and welcoming our new colleagues to the Lithia & Driveway family.”

The UK motor and fleet management divisions will report to Neil Williamson, Lithia’s UK regional president, who has led the integration of car dealer group Jardine acquired in  March 2023.

Pendragon Plc will now be renamed Pinewood Technologies Group and will focus on the company’s dealer management software business as a pure-play software-as-a-service (SaaS) business.

Neil Williamson, Lithia UK regional president, commented: “Our investment in Pendragon expands our footprint into Wales and Scotland, while serving to increase our brands, markets, and density in existing locations. This increased footprint, alongside the integration of Pendragon Vehicle Management and migration to a single technology platform with Pinewood, establishes Lithia as a diversified, innovative, and scaled UK presence with significant advantages to peers. We look forward to working with our new talented colleagues and OEM partners in the pursuit of providing transportation solutions wherever, whenever, and however customers desire.”