AUTOCANADA FURTHER EXPANDS INTO SOUTHERN ONTARIO WITH ACQUISITION OF STERLING HONDA
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.
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.
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.
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.