EDMONTON, AB, Aug. 22,
2022 /CNW/ - AutoCanada Inc. ("AutoCanada" or
the "Company") (TSX: ACQ), a multi-location North American
automobile dealership group, announced today that it has acquired
Velocity Autobody, a Tesla certified, I-CAR Gold Class collision
centre located in Markham,
Ontario.
"The addition of this well-managed business marks the seventh
collision centre acquisition since Q4 2020 and continues our
strategy to expand our national collision centre footprint," said
Executive Chairman, Paul Antony. "We
remain focused on supporting our customers and OEM partners through
the entire vehicle ownership lifecycle. We continue to believe that
increasing vehicle complexity puts a further emphasis on fixing
vehicles the right way – using parts and procedures prescribed by
the OEM."
Velocity Autobody has been providing high quality service for
over 16 years and operates out of a 12,000 square foot facility
with more than 25 production bays. The current management team will
continue to operate the business going forward. The acquisition
represents a continuation of the Company's goal to further expand
and develop its national collision centre network.
Financial Highlights
The acquired dealership generates in excess of $3.5 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 10
locations, and six 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.
Additional information about AutoCanada Inc. is available at
www.sedar.com and 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 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 dealerships, the successful integration of such
dealerships into AutoCanada's business, and the growth of the
Company's collision and F&I divisions.
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 dealerships, the successful integration of
the acquired dealerships into AutoCanada's platform, the growth
opportunities at the acquired dealerships and the growth
opportunities for our collision and RightRide divisions.
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.