Automobile dealership group acquires local dealership

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Source Aug 02, 2022: CNW

AutoCanada Inc. (“AutoCanada” or the “Company”) (TSX: ACQ), a multi-location North American automobile dealership group, announced today that it has acquired Kelleher Ford, a new and used vehicle Ford dealership and collision centre, located in Brandon, Manitoba.

“This high-quality operation is our second Ford dealership and initiates our presence in Western Manitoba – an attractive truck market, while providing the opportunity to further expand our presence in the market,” said Executive Chairman, Paul Antony. “We are pleased to welcome the team from Kelleher Ford, and we look forward to many opportunities for continued growth as we integrate them into our strong portfolio of dealerships.”

Kelleher Ford is the largest Ford dealership in Western Manitoba, operating for over 25 years with facilities of more than 35,000 square feet on seven acres, including a collision centre. The current management team will continue to operate the business going forward. Apart from continuing to strengthen the dealership’s performance, the acquisition unlocks additional growth opportunities, including the potential to expand AutoCanada’s used vehicle, finance and insurance, collision and RightRide businesses. The transaction includes the acquisition of the underlying real estate.

Financial Highlights

The acquired dealership including the collision centre generates in excess of $50 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 2 used vehicle dealerships supporting the Used Digital Retail Division, the RightRide division operates 9 locations, and 5 stand-alone collision centres (within our group of 20 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.