EDMONTON, June 20, 2014 /CNW/ - AutoCanada Inc. ("AutoCanada" or the
"Company") (TSX:ACQ) announced today that further to the prior
announcements on April 29, 2014 and June 16, 2014, we have received
manufacturer approval for the Hyatt Transactions (as defined below).
AutoCanada, through certain wholly-owned subsidiaries, entered into
agreements with Hyatt Automotive Group Inc. and certain other private
arm's length vendors (the "Hyatt Vendors") to purchase the operating and business assets of six dealerships in
Calgary (the "Hyatt Dealerships") and one exclusive right to build and operate a Nissan motor vehicle
dealership on a designated property in Southeast Calgary (the "Nissan Open Point Dealership"). The Hyatt Dealerships are known by their trade names: Hyatt
Mitsubishi, Fish Creek Nissan, Calgary Hyundai, Northland Volkswagen,
Hyatt Infiniti and Crowfoot Hyundai. The transactions to acquire the
Hyatt Dealerships and the right to open the Nissan Open Point
Dealership are collectively referred to herein as the "Hyatt Transactions".
In connection with the Hyatt Transactions, certain affiliates of
AutoCanada will enter into long term facility leases with the Hyatt
Vendors with respect to the land on which the Hyatt Dealerships are
currently located or, in the case of the Nissan Open Point Dealership,
proposed to be located.
The acquisition of Hyatt Mitsubishi, Calgary Hyundai, Northland
Volkswagen and Crowfoot Hyundai are to close on June 23, 2014. The
acquisition of Fish Creek Nissan, Hyatt Infiniti and the Nissan Open
Point Dealership is expected to occur on or about July 3, 2014, subject
to customary closing conditions.
The Hyatt Dealerships are all located in Calgary, Alberta and include a
total of 80 service bays. In 2013 the Hyatt Dealerships retailed a
total of approximately 3,991 new vehicles and 2,317 used vehicles.
This press release does not constitute an offer to sell or the
solicitation of an offer to buy any securities of AutoCanada in the
United States. The common shares described in this press release have
not been and will not be registered under the United States Securities
Act of 1933, as amended, or the securities laws of any state and may
not be offered, sold or delivered in the United States absent an
exemption from registration.
AutoCanada is one of Canada's largest multi-location automobile
dealership groups, currently operating 36 franchised dealerships in
eight provinces and has approximately 1,800 employees. AutoCanada
currently sells Chrysler, Dodge, Jeep, Ram, Fiat, Chevrolet, GMC,
Buick, Cadillac, Infiniti, Nissan, Hyundai, Subaru, Mitsubishi, Audi,
Volkswagen, BMW, and MINI branded vehicles. In 2013, our dealerships
sold approximately 36,000 vehicles and processed approximately 364,000
service and collision repair orders in our 381 service bays during that
Additional information about AutoCanada Inc. is available at www.sedar.com and the Company's website at www.autocan.ca.
This press release contains forward-looking statements and
forward-looking information within the meaning of applicable securities
laws. All statements other than statements of historical fact contained
in this press release may be forward-looking statements and
forward-looking information. In particular, forward-looking information
and statements in this press release include, but are not limited to,
statements relating to the completion of the closing of the Hyatt
Transactions, including the assumption that all necessary conditions
will be satisfied and all necessary approvals will be obtained.
Although AutoCanada believes that the expectations and assumptions on
which such forward-looking statements and information are based are
reasonable, undue reliance should not be placed on the forward-looking
statements and information as AutoCanada cannot give any assurance that
they will prove to be correct. Since forward-looking statements and
information address future events and conditions, by their very nature
they involve inherent risks and uncertainties. Actual results could
differ materially from those currently anticipated due to a number of
factors and risks. These include, but are not limited to, general
economic, market and business conditions. Readers are cautioned that
the foregoing list of risks and uncertainties is not exhaustive.
Additional information on these and other risk factors that could
affect AutoCanada's operations, financial results and the completion of
the Offering are included in AutoCanada's annual information form and
the other disclosure documents filed by AutoCanada with securities
regulatory authorities which may be accessed through the SEDAR website
at www.sedar.com. The forward-looking statements and information contained in this press
release are made as of the date hereof and AutoCanada does not
undertake any obligation to update publicly or revise any
forward-looking statements or information, whether as a result of new
information, future events or otherwise, unless so required by
applicable securities laws.
SOURCE: AutoCanada Inc.
For further information:
Jeff Christie, CA
Phone: (780) 732-7164