Strategic acquisition provides strong brand and geographic diversification, adding 11 dealerships across the high-growth
"The acquisition adds significant size, scale and scope to
The senior leadership team at
Transaction Highlights
- Acquired dealerships are: London Honda, London Kia, South London Nissan, and London Infiniti in
London, Ontario ; Guelph Kia inGuelph, Ontario ;Brantford Honda inBrantford, Ontario ; Waterloo Honda inWaterloo, Ontario ; and Acura of Hamilton, Subaru of Hamilton,Hamilton Kia , andPlaza Nissan inHamilton, 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 - increasesOntario units retailed mix inCanada 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 opportunitiesAutopoint's footprint presents attractive opportunities to grow our collision and RightRide divisionsAutoCanada has also entered into an agreement to acquire North London Toyota fromAutopoint ; 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
About
Additional information about
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
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
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,
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