EDMONTON, AB, Sept. 10,
2024 /CNW/ - AutoCanada Inc. ("AutoCanada" or
the "Company") (TSX: ACQ) a leader in Canadian automotive retail,
today announced the completion of the strategic divestiture of two
Stellantis stores located in Ponoka,
Alberta and Airdrie,
Alberta. This decision aligns with the company's commitment
to improve profitability and reduce leverage.
Paul Antony, Executive Chairman,
stated, "This divestiture is the first strategic move we're making
as part of AutoCanada's realignment. We are taking actions that
allow us to concentrate our resources and efforts to improve core
operations, optimize our cost structure, strengthen profitability
and reduce leverage."
"We want to express our sincere gratitude to our dedicated
employees and loyal customers at these locations," Paul Antony, Executive Chairman added. "Their
support has been invaluable, and we are committed to ensuring a
smooth transition during this process."
Financial Highlights
These dealerships generated $86.5
million in sales during the trailing 12-month period ending
June 30, 2024. Total financial
consideration to AutoCanada was paid in cash on closing. Proceeds
from the sale will be used to reduce the amount outstanding under
the Company's revolving credit facility. This transaction is
expected to be immediately accretive to Adjusted EBITDA margin and
earnings per share.
About AutoCanada
AutoCanada is a leading North American multi-location automobile
dealership group currently operating 83 franchised dealerships,
comprised of 28 brands, in eight provinces in Canada as well as a group in Illinois, USA. AutoCanada currently sells
Acura, Alfa Romeo, Audi, BMW, Buick, Cadillac, Chevrolet, Chrysler, Dodge,
FIAT, Ford, GMC, Honda, Hyundai, Infiniti, Jeep, Kia, Lincoln, Mazda, Mercedes-Benz, MINI, Nissan,
Porsche, Ram, Subaru, Toyota, Volkswagen, and Volvo branded
vehicles. In addition, AutoCanada's Canadian Operations segment
currently 11 stand-alone collision centres within our group of 27
collision centres. In 2023, the Company generated revenue in excess
of $6 billion and our dealerships
sold over 100,000 retail vehicles.
Additional Information
Additional information about AutoCanada is available at the
Company's website at www.autocan.ca and www.sedarplus.ca.
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 identified 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, our actions to improve core
operations, optimize cost structure, strengthen profitability and
reduce leverage, and the impact of the transaction on Adjusted
EBITDA margin and earnings per share..
AutoCanada cautions that the foregoing forward-looking
statements are subject to assumptions, risks and uncertainties and
our ability to mitigate and address those risks and uncertainties.
The Company's Annual Information Form and other documents filed
with securities regulatory authorities (accessible through the
SEDAR website at www.sedarplus.ca) 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.
