EDMONTON, April 25, 2016 /CNW/ - AutoCanada Inc. ("AutoCanada" or the "Company") (TSX: ACQ) announced today that it has entered into a financing arrangement with PPH Holdings Inc. ("PPH"), a corporation wholly owned and controlled by Mr. Patrick Priestner.
AutoCanada will provide a participatory loan to PPH. These funds will be used by PPH to fund the purchase of 60% of Southview Acura. AutoCanada's anticipated return will be approximately equal to 60% of the net income of Southview Acura. The transaction was reviewed and approved by AutoCanada's independent members of the Board of Directors.
"The Company is pleased to have the opportunity to provide financing to Mr. Priestner in respect to his purchase of such a strong brand in an Acura dealership. This is a financing opportunity which provides long-term shareholder value to AutoCanada," stated Mr. Steven Landry, CEO of AutoCanada.
AutoCanada is one of Canada's largest multi-location automobile dealership groups, currently operating 53 franchised dealerships, comprised of 60 franchises, in eight provinces and has over 3,700 employees. AutoCanada currently sells Chrysler, Dodge, Jeep, Ram, FIAT, Chevrolet, GMC, Buick, Cadillac, Infiniti, Nissan, Hyundai, Subaru, Mitsubishi, Audi, Volkswagen, Kia, BMW and MINI branded vehicles. In 2015, our dealerships sold approximately 62,800 vehicles and processed approximately 848,000 service and collision repair orders in our 912 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.
SOURCE AutoCanada Inc.
For further information: Christopher Burrows, Vice-President & Chief Financial Officer, Phone: 780.509.2808, Email: firstname.lastname@example.org