EDMONTON, Nov. 11, 2015 /CNW/ - AutoCanada Inc. ("AutoCanada" or the "Company") (TSX: ACQ) announced today it has entered into a financing arrangement with a holding company, PPH. PPH is wholly owned by Mr. Pat Priestner, Executive Chairman of AutoCanada and was formed for the purposes of purchasing a Honda dealership.
AutoCanada will provide a participatory loan to PPH. These funds will be used by PPH to fund 80% of its purchase of Whitby Oshawa Honda. AutoCanada's anticipated return will be approximately equal to 80% of the net income of Whitby Oshawa Honda. The transaction was reviewed and approved by AutoCanada's independent Board of Directors.
AutoCanada is one of Canada's largest multi-location automobile dealership groups, currently operating 53 franchised dealerships, comprised of 61 franchises, in eight provinces and has over 3,600 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 2014, our dealerships sold approximately 57,000 vehicles and processed approximately 786,000 service and collision repair orders in our 822 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: email@example.com