EDMONTON, AB, Dec. 1, 2022
/CNW/ - AutoCanada Inc. ("AutoCanada" or the "Company") (TSX:
ACQ), a multi-location North American automobile dealership group,
announced today that it has acquired Sterling Honda located in Hamilton, Ontario.
"We're excited about the addition of this high-quality
dealership, expanding AutoCanada's footprint in the attractive
Hamilton market while adding brand
diversity within our overall portfolio," said Executive Chairman,
Paul Antony. "Notably, the
acquisition expands our relationship with Honda, bringing a fourth
Honda store into our dealership portfolio and represents our fifth
dealership in Hamilton. The
acquisition advances our continued strategy of diversifying our
brand and geographic mix and will provide growth opportunities as
we integrate it with our strong portfolio of
dealerships."
Sterling Honda is a
well-established business in the Hamilton community, operating out of a
recently re-imaged 27,000 square foot facility with 16 mechanical
bays and has a track record of delivering top-tier customer
satisfaction. Apart from continuing to strengthen the dealership's
performance, the acquisition unlocks additional growth
opportunities, including the potential to expand the dealership's
used to new retail units ratio and drive F&I growth.
Financial Highlights
The acquired dealership generates in excess of $65 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 82 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. In addition, AutoCanada's Canadian Operations segment
currently operates 3 used vehicle dealerships and 1 used vehicle
auction business supporting the Used Digital Retail Division, 11
RightRide division locations, and 9 stand-alone collision centres
within our group of 24 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.
Forward-Looking
Information
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 dealership, the successful integration of such
dealership into AutoCanada's business, expansion of such
dealership's used to new retail units ratio, and such dealership's
F&I growth.
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 dealership, the successful integration of
the acquired dealership into AutoCanada's platform, and the growth
opportunities at the acquired dealership.
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.