EDMONTON, AB, Oct. 31,
2022 /CNW/ - AutoCanada Inc. ("AutoCanada" or the
"Company") (TSX: ACQ), a multi-location North American automobile
dealership group, announced today that it has acquired Kavia Auto
Body, a collision centre located in Saskatoon, Saskatchewan.
Kavia Autobody is a SGI Elite collision centre and has provided
superior collision services to Saskatoon and the surrounding area for nearly
40 years. The store also maintains certifications with Tesla, GM,
Ford, Kia, Stellantis, Nissan, Infiniti, Genesis, Honda, Acura,
Subaru, and Hyundai. The business operates out of a
state-of-the-art facility and is strategically located close to two
of AutoCanada's dealerships: Dodge City Auto and Saskatoon Motor
Products. This acquisition represents a continuation of the
Company's goal to further expand and develop its national collision
centre network to match AutoCanada's dealership network.
"The addition of this well-managed business continues the
strategic expansion of our national collision presence in markets
complementary to our existing dealerships," said Executive
Chairman, Paul Antony. "Our focus
remains on supporting our customers and OEM partners through the
entire vehicle ownership lifecycle – which includes repairing
vehicles by following OEM recommended repair procedures and using
the recommended OEM parts to ensure the integrity of repaired
vehicles. Kavia Auto Body has built a reputation for excellence and
quality in servicing both domestic and imported vehicles in the
Saskatoon market and we look
forward to continuing its legacy into the future."
Financial Highlights
The acquired collision centre generates in excess of
$5.5 million in annual revenue. The
transaction will be funded from a drawdown of the Company's credit
facility and is expected to be accretive to 2022 earnings.
About AutoCanada
AutoCanada is a leading North American multi-location automobile
dealership group currently operating 81 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, Acura, Honda and Porsche branded
vehicles. Additionally, the Company's Canadian operations segment
currently operates three used vehicle dealerships and an auction
business supporting the Used Digital Retail Division, the RightRide
division operates 11 locations, and seven stand-alone collision
centres (within our group of 22 collision centres). In 2021, our
dealerships sold approximately 86,000 vehicles and processed over
800,000 service and collision repair orders in our 1,303 service
bays generating revenue in excess of $4
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 F&I 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.