EDMONTON, April 29, 2014 /CNW/ - AutoCanada Inc. ("AutoCanada" or the
"Company") (TSX: ACQ) announced today that it has signed a purchase
agreement for a dealer group, as well as purchase agreements for
additional unrelated dealerships outside of the dealer group. In
total, the Company has executed purchase agreements for eight
dealerships, which we would expect to close at various times within the
next 90 days. All such agreements are in different stages of progress
with respect to due diligence, and all are subject to Manufacturer
approval which is anticipated, but is not assured.
With respect to such dealerships, the estimated aggregate results in
2013 were as follows:
-
Total revenues of $422 million
-
Total new vehicles retailed of 5,936
-
Total used vehicles retailed of 3,538
-
Total service bays of 126
The purchase multiples are consistent with recent acquisition activity.
AutoCanada has a number of financing alternatives available and
anticipates financing these acquisitions through either debt or the
issuance of equity or a combination thereof.
Commenting upon this development, Pat Priestner, Chairman and CEO of
AutoCanada stated that, "The Company is excited by the opportunity to
add additional dealerships to the AutoCanada family, and we are working
diligently with the various Manufacturers to obtain their approval,
which we would anticipate over the coming four to six weeks. In
addition to these eight dealerships, we continue to pursue additional
opportunities which are in various stages of progress."
About AutoCanada
AutoCanada is one of Canada's largest multi-location automobile
dealership groups, currently operating 34 franchised dealerships in
seven provinces and has over 1,600 employees. AutoCanada currently
sells Chrysler, Dodge, Jeep, Ram, Fiat, Chevrolet, GMC, Buick,
Cadillac, Infiniti, Nissan, Hyundai, Subaru, Mitsubishi, Audi, and
Volkswagen branded vehicles. In 2013, our dealerships sold
approximately 36,000 vehicles and processed approximately 364,000
service and collision repair orders in our 381 service bays during that
time.
Additional information about AutoCanada Inc. is available at www.sedar.com and the Company's website at www.autocan.ca.
Forward-Looking Statements
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 are not
historical facts and are forward-looking and may 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, these factors could cause actual results or outcomes to
differ materially from those expressed in the forward-looking
statements. Therefore, any such forward-looking statements are
qualified in their entirety by reference to the factors discussed
throughout this release and as contained in the Company's Annual
Information Form dated March 20, 2014 which is accessible through the
SEDAR website at www.sedar.com.
SOURCE AutoCanada Inc.
