Strategic acquisition provides strong brand
and geographic diversification, adding 11 dealerships across the
high-growth Southwestern Ontario
market
EDMONTON, AB, Dec. 1, 2021 /CNW/ - AutoCanada Inc.
("AutoCanada" or the "Company") (TSX: ACQ), a multi-location North
American automobile dealership group, announced that it has
completed the acquisition of 11 dealerships from the Autopoint
Group ("Autopoint"), a group that has operated for over 17 years
across Southwestern Ontario. The dealerships generate annual
revenue of over $345 million, selling
and servicing Honda, Acura, Nissan, Infiniti, Subaru, and Kia
vehicles.
"The acquisition adds significant size, scale and scope to
AutoCanada's existing platform in a growing market," said
Paul Antony, AutoCanada's Executive
Chairman. "We are very honoured to be able to partner with Honda
and Acura for the first time, to represent Kia again, and to expand
our existing partnerships with Nissan, Infiniti, and Subaru.
Last but not least, we are very excited to welcome the high quality
Autopoint team to the AutoCanada family."
The senior leadership team at Autopoint wished to share: "We are
incredibly excited to join the AutoCanada family and continue to
deliver top-tier performance to our OEM partners. All of our team
members are staying with us through this transaction and will have
even more opportunities to grow alongside AutoCanada."
Transaction Highlights
- Acquired dealerships are: London Honda, London Kia, South
London Nissan, and London Infiniti in London, Ontario; Guelph Kia in Guelph, Ontario; Brantford Honda in Brantford, Ontario; Waterloo Honda in
Waterloo, Ontario; and Acura of
Hamilton, Subaru of Hamilton, Hamilton Kia, and Plaza Nissan in
Hamilton, Ontario
- Acquired dealerships generate annual revenue of over
$345 million, selling over 6,000 new
retail vehicles and 3,000 used retail vehicles annually
- Provides geographic diversification by more than doubling
AutoCanada's Ontario footprint
from 7 to 18 dealerships - increases Ontario units retailed mix in Canada from 16% to 33%
- Provides brand diversification by adding three new brands to
AutoCanada's Canadian platform and increasing Import Canadian
revenue brand mix from 25% to 32%
- Well managed dealerships with talented operating group who will
remain with the dealerships
- AutoCanada playbook and existing operating platforms will
support integration and drive growth opportunities
- Autopoint's footprint presents attractive opportunities to grow
our collision and RightRide divisions
- AutoCanada has also entered into an agreement to acquire North
London Toyota from Autopoint; this acquisition remains subject to
customary conditions, including OEM approval
The transaction will be funded from a drawdown of the Company's
credit facility and is expected to be accretive to 2022
earnings.
An investor presentation about the Autopoint acquisition can be
accessed at the following URL:
https://investors.autocan.ca/event/acquisition-of-autopoint-group/
About AutoCanada
AutoCanada is a leading North
American multi-location automobile dealership group 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, Porsche and Acura branded
vehicles. Additionally, the Company's Canadian operations segment
currently operates two used vehicle dealership supporting the Used
Digital Retail Division, and four stand-alone collision centres
(within our group of 18 collision centres). In 2020, our then
dealerships sold approximately 66,000 vehicles and processed over
756,000 service and collision repair orders in our 1,098 service
bays generating revenue in excess of $3
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 RightRide 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.