Auction company 

AUTOCANADA ACQUIRES NORTH TORONTO AUCTION

EDMONTON, Alta., October 4, 2022 /CNW/ – AutoCanada Inc. (“AutoCanada” or the “Company”) (TSX: ACQ), a North American group of multi-location automobile dealerships, announced the acquisition of North Toronto Auction (“NTA”), a used vehicle auction house, serving dealers and consumers, located at Innisfil, ON.

In business for over 19 years serving Toronto and surrounding areas, NTA operates a state-of-the-art auction facility and has historically traded over 5,000 vehicles per year. NTA Operations provides an in-house, in-person and online auction solution that can be used to facilitate vehicle sales for AutoCanada used and franchise dealers. Additionally, NTA can be used 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 purchases vehicles at auction from governments, financial institutions, repossession companies, dealerships, rental fleets, and more. In addition to continuing to strengthen AutoCanada’s position in the Canadian used vehicle ecosystem, the acquisition opens up additional growth opportunities for NTA’s experienced management team to scale the auction business and add other locations across Canada.

“We are excited to add NTA’s high quality auction operations and proprietary digital auction software to the used digital retail division as they have the potential to facilitate wholesale vehicle transactions. on a large scale, both internally at AutoCanada dealerships and externally for other dealerships,” said Executive Chairman, Paul-Antoine. “This represents our first foray into the auction business; however, many successful used vehicle operators in the United States also have their own auctions, as it allows vertical integration of inventory management and a reduced fees paid at auction. We are thrilled to welcome NTA’s experienced management team to the AutoCanada family, and look forward to continuing their legacy in the future.”

Financial Highlights

NTA generates more than $4.5 million annual revenue and will operate within the Used Digital Retail division. The transaction will be financed by drawing on the Company’s credit facility and is expected to be accretive to 2022 earnings.

About Auto Canada

AutoCanada is a leading North American multi-location automotive dealership group that currently operates 81 franchised dealerships, comprising 28 brands, in eight provinces across the Canadaas well as a group Illinois, United States. AutoCanada currently sells Chrysler, Dodge, Jeep, Ram, FIAT, Alfa Romeo, Chevrolet, GMC, BuickCadillac, Ford, Infiniti, Nissan, Hyundai, Subaru, Audi, Volkswagen, Kia, Mazda, Mercedes-Benz, BMW, MINI, Volvo, Toyota, lincoln, Acura, Honda and Porsche. 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 centers (within our group of 21 collision centres). In 2021, our dealerships sold approximately 86,000 vehicles and processed more than 800,000 service and collision repair orders at our 1,303 service bays generating revenues in excess of $4 billion.

Additional information about AutoCanada Inc. is available at www.sedar.com and on 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 applicable Canadian securities laws. 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 statement that expresses or implies discussions of expectations, beliefs, plans, goals, assumptions, or future events or performance (often, but not always, through the use of words or phrases such as “will result probably”, “are expected to”, “will continue”, “is planned”, “projection”, “vision”, “goals”, “objective”, “target”, “timings”, “outlook”, “anticipate”, “expect”, “estimate”, “could”, “should”, “plan”, “seek”, “may”, “intend”, “probable”, “should”, “believe” and similar expressions) are not historical facts and are forward-looking. In particular, this press release contains forward-looking statements regarding, among other things, the future operating results of the acquired business, the successful integration of this business into AutoCanada’s business, the development of the sales division the company’s digital retail opportunity and future operating results. of the company’s pre-owned digital retail division.

The forward-looking statements included in this press release are not guarantees of future performance and should not be relied upon unduly. Readers are cautioned that forward-looking statements are based on current expectations, estimates and projections which, by their nature, involve a number of known and unknown risks and uncertainties which could cause actual results actuals 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; interest and tax rate volatility; operational risks inherent in the automotive retail industry; and changes in general economic conditions, including 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. Therefore, actual results or results may differ materially from those expressed in the forward-looking statements. In particular, in making its forward-looking statements, AutoCanada has made assumptions regarding, among other things, the future operating results of the acquired business, the successful integration of that business into AutoCanada’s business, the development of the the Company’s pre-owned digital retail initiative and the future operating results of the company’s pre-owned 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 the securities authorities (available on the SEDAR website at www.sedar.com) describe the risks, material assumptions and other factors that could affect 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 undertakes no obligation to publicly update or revise them to reflect new events or circumstances, except as may be required. under applicable securities laws.

SOURCEAuto Canada Inc.

For further information: Mike Borys, Chief Financial Officer, Phone: 780.509.2808, Email: [email protected]

Related posts