EDMONTON, AB, May 2, 2022
/CNW/ - AutoCanada Inc. ("AutoCanada" or the "Company") (TSX: ACQ),
a multi-location North American automobile dealership group,
announced today that it has acquired Porsche of London and Audi
Windsor (the "dealerships"), located in London and Windsor,
Ontario, respectively.
"We're excited about the addition of these high-quality Audi and
Porsche dealerships, further expanding our platform in Ontario while adding brand diversity and
increasing the mix of luxury dealerships within our overall
portfolio," said Executive Chairman, Paul
Antony. "Notably, the acquisition expands our relationship
with Audi and brings Porsche into our Canadian dealership
portfolio. The acquisition of these dealerships advances our
continued strategy of diversifying our brand and geographic mix and
will provide tremendous growth opportunities as we integrate them
with our strong portfolio of dealerships."
Both dealerships operate out of recently built, fully imaged,
facilities and have a track record of delivering top-tier customer
satisfaction experiences. Further, this acquisition strategically
bolsters AutoCanada's platform in London and Windsor, attractive markets in
Southwestern Ontario. Apart from
continuing to strengthen the dealerships' performance, the
acquisition unlocks additional growth opportunities, including the
potential to expand AutoCanada's collision centre footprint in each
of the markets. The transaction includes the acquisition of the
underlying real estate for both dealerships.
Financial Highlights
The acquired dealerships generate in excess of $80 million in annual revenue. The transaction
will be funded from a drawdown of the Company's credit facility and
is expected to be accretive to 2022 earnings.
About AutoCanada
AutoCanada is a leading North American multi-location automobile
dealership group currently operating 78 franchised dealerships,
comprised of 28 brands, in eight provinces in Canada as well as a group in Illinois, USA. AutoCanada currently sells
Chrysler, Dodge, Jeep, Ram, FIAT, Alfa Romeo, Chevrolet, GMC,
Buick, Cadillac, Ford, Infiniti,
Nissan, Hyundai, Subaru, Audi, Volkswagen, Kia, Mazda,
Mercedes-Benz, BMW, MINI, Volvo, Toyota, Lincoln, Honda, Acura and Porsche branded
vehicles. In 2021, our dealerships sold approximately 86,000
vehicles and processed over 800,000 service and collision repair
orders in our 1,303 service bays generating revenue in excess of
$4.5 billion.
Additional information about AutoCanada Inc. is available at
www.sedar.com and the Company's website at www.autocan.ca.
Certain statements contained in this press release are
forward-looking statements and information (collectively,
"forward-looking statements") within the meaning of the applicable
Canadian securities legislation. We hereby provide cautionary
statements identifying important factors that could cause our
actual results to differ materially from those projected in these
forward-looking statements. Any statements that express, or involve
discussions as to, expectations, beliefs, plans, objectives,
assumptions or future events or performance (often, but not always,
through the use of words or phrases such as "will likely result",
"are expected to", "will continue", "is anticipated", "projection",
"vision", "goals", "objective", "target", "schedules", "outlook",
"anticipate", "expect", "estimate", "could", "should", "plan",
"seek", "may", "intend", "likely", "will", "believe" and similar
expressions) are not historical facts and are forward looking. In
particular, this press release contains forward-looking statements
with respect to, among other things, future operating results of
the acquired dealerships, the successful integration of such
dealerships into AutoCanada's business, and the growth of the
Company's collision and F&I divisions.
The forward-looking statements included in this press release
are not guarantees of future performance and should not be unduly
relied upon. Readers are cautioned that forward-looking statements
are based on current expectations, estimates and projections that,
by their nature, forward-looking statements involve a number of
known and unknown risks and uncertainties, which could cause actual
results to differ materially from those anticipated and described
in the forward-looking statements. These known and unknown risks
and uncertainties include, but are not limited to: future operating
results, the impact of the COVID-19 pandemic on our operations,
events that interrupt vehicle or parts supply to AutoCanada's OEMs,
financial condition and liquidity and the duration of such impacts;
potential changes in the regulatory and legislative environment;
volatility in interest and tax rates; operating risks inherent in
the automotive retail industry; and changes in general economic
conditions including the capital and credit markets.
Forward-looking statements involve estimates and assumptions
and are subject to risks, uncertainties and other factors some of
which are beyond our control and difficult to predict. Accordingly,
actual results or outcomes may differ materially from those
expressed in the forward-looking statements. In particular, in
presenting its forward-looking statements, AutoCanada has made
assumptions respecting, among other things the future operating
results of the acquired dealerships, the successful integration of
the acquired dealerships into AutoCanada's platform, the growth
opportunities at the acquired dealerships and the growth
opportunities for our collision and RightRide divisions.
AutoCanada cautions that the foregoing list of assumptions,
risks and uncertainties is not exhaustive. The Company's Annual
Information Form and other documents filed with securities
regulatory authorities (accessible through the SEDAR website at
www.sedar.com) describe the risks, material assumptions and other
factors that could influence actual results and which are
incorporated herein by reference. The forward-looking statements
contained in this press release speak only as of the date hereof
and AutoCanada assumes no obligation to publicly update or revise
them to reflect new events or circumstances, except as may be
required pursuant to applicable securities laws.
SOURCE AutoCanada Inc.