AUTOCANADA ACQUIRES NORTH TORONTO AUCTION
EDMONTON, AB, Oct. 4, 2022 /CNW/ - AutoCanada Inc. ("AutoCanada" or the "Company") (TSX: ACQ), a multi-location North American automobile dealership group, announced that it has acquired North Toronto Auction ("NTA"), a fee-based used vehicle auction business, serving dealers and consumers alike, located in Innisfil, Ontario.
Operating for over 19 years serving Toronto and surrounding areas, NTA operates a state-of-the-art auction facility and has historically transacted over 5,000 vehicles per year. NTA's operations provide an in-house, in-person and online auction solution, which may be utilized to facilitate vehicle sales for both AutoCanada's used and franchise dealerships. Further, NTA has the ability to be utilized as a wholesale engine, balancing and redistributing vehicles inside and outside the AutoCanada network across North America, through a frictionless inventory management and transfer process. Additionally, NTA is also a source of vehicles as its sales team sources auction vehicles from governments, financial institutions, repossession companies, dealerships, rental fleets, and more. Apart from continuing to strengthen AutoCanada's position in the Canadian used vehicle ecosystem, the acquisition unlocks additional growth opportunities for NTA's experienced management team to scale the auction business and add other locations across Canada.
"We're excited to add NTA's high-quality auction operations and proprietary digital auction software to the Used Digital Retail Division as it has the potential to facilitate wholesale vehicle transactions at scale, both internally, across AutoCanada dealerships, and externally to other dealers," said Executive Chairman, Paul Antony. "This represents our initial foray into the auction business; however, many of the successful used vehicle operators in the U.S. also own their own auctions as it allows for the vertical integration of inventory management and a reduction in fees paid to auctions. We are pleased to welcome the experienced NTA management team to the AutoCanada family, and we look forward to continuing its legacy into the future."
NTA generates in excess of $4.5 million in annual revenue and will operate within the Used Digital Retail Division. The transaction will be funded from a drawdown of the Company's credit facility and is expected to be accretive to 2022 earnings.
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 supporting the Used Digital Retail Division, the RightRide division operates 10 locations, and five stand-alone collision centres (within our group of 21 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.
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 business, the successful integration of such business into AutoCanada's business, the development of the Company's Used Digital Retail Division and future operating results of the Company's Used Digital Retail Division.
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, 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 business, the successful integration of such business into AutoCanada's business, the development of the Company's Used Digital Retail Initiative and the future operating results of the Company's Used Digital Retail Division.
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.