EDMONTON, June 2, 2012 /CNW/ - AutoCanada Inc. ("AutoCanada" or the
"Company") (TSX: ACQ) announced today that it has purchased a 31%
non-voting equity interest in Petersen GMC Buick ("Petersen"), a
dealership located in Sherwood Park, Alberta. Petersen has been
servicing the Sherwood Park and Greater Edmonton area for over
twenty-eight years and in 2011 sold 707 new vehicles and 604 used
In accordance with the terms of GM Canada's approval, AutoCanada shall
make its investment through a holding company together with Pat
Priestner, Chief Executive Officer of AutoCanada, and other senior
managers, with Mr. Priestner having 100% of the voting shares of the
holding company and Mr. Priestner named as Dealer Operator of Petersen.
The holding company shall have a 51% voting interest in Petersen, with
Blaine and Todd Nicholson purchasing the remaining 49% voting interest.
The transaction was reviewed and approved by AutoCanada's independent
Board of Directors.
"We are pleased to add a Buick GMC dealership to our portfolio," stated
Pat Priestner. "Petersen has been a long-standing dealership in the
Sherwood Park area and is highly regarded for its outstanding customer
service and commitment to the community, and we are honoured to have
the opportunity to continue this tradition."
"As stated in our press release of May 1, 2012, in respect to any future
GM dealership acquisitions outside of Sherwood Park, we will seek to
acquire a 100% ownership interest, in which AutoCanada would purchase
an 80% non-voting equity interest, with myself and other senior
managers purchasing a 20% equity interest; and I will have 100% voting
control and be named Dealer Operator, in accordance with GM Canada
requirements," Pat Priestner stated.
AutoCanada is one of Canada's largest multi-location automobile
dealership groups, currently operating 25 franchised dealerships in six
provinces and has over 1,100 employees. AutoCanada currently sells
Chrysler, Dodge, Jeep, Ram, FIAT, Chevrolet, Infiniti, Nissan, Hyundai,
Subaru, Mitsubishi, and Volkswagen branded vehicles. In 2011, our
dealerships sold approximately 28,000 vehicles and processed
approximately 300,000 service and collision repair orders in our 333
service bays during that time.
Additional information about AutoCanada Inc. is available at www.sedar.com and the Company's website at www.autocan.ca.
Forward Looking Statements
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",
"expect", "plan", "seek", "may", "intend", "likely", "will", "believe"
and similar expressions are not historical facts and are
forward-looking and may 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, these
factors could cause actual results or outcomes to differ materially
from those expressed in the forward-looking statements. Therefore, any
such forward-looking statements are qualified in their entirety by
reference to the factors discussed throughout this document.
The Company's Annual Information Form and other documents filed with
securities regulatory authorities (accessible through the SEDAR website
www.sedar.com describe the risks, material assumptions and other factors that could
influence actual results and which are incorporated herein by
Further, any forward-looking statement speaks only as of the date on
which such statement is made, and, except as required by applicable
law, we undertake no obligation to update any forward-looking statement
to reflect events or circumstances after the date on which such
statement is made or to reflect the occurrence of unanticipated
events. New factors emerge from time to time, and it is not possible
for management to predict all of such factors and to assess in advance
the impact of each such factor on our business or the extent to which
any factor, or combination of factors, may cause actual results to
differ materially from those contained in any forward-looking
SOURCE AutoCanada Inc.
For further information:
Jeff Christie, CA
Phone: (780) 732-7164