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."
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/
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.
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.
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