Lithia Motors (LAD) said Tuesday it has acquired Elk Grove Subaru in Elk Grove, California, and expanded its network in the Sacramento area, strengthening its presence in the Southwest region.

The company said the acquisition, which it financed using existing on-balance sheet capacity, is expected to generate $100 million in annual revenue.

Additionally, Lithia said it approved a $350 million increase to its share repurchase authorization, raising the total available for future repurchases to about $748 million.

Lithia has repurchased over 197,500 shares this year, investing more than $71 million at a weighted average price of $361 per share, it added.