EDMONTON,
April 29, 2014 /PRNewswire/ -
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.