EDMONTON, Nov. 16, 2015 /CNW/ - AutoCanada Inc. ("AutoCanada") (TSX: ACQ) announced today that it has entered into an agreement to purchase the operating assets of 417 Infiniti Nissan Limited, which owns and operates two dealerships, 417 Nissan and 417 Infiniti in Ottawa, Ontario (collectively, the "Dealerships"). The transaction is subject to customary closing conditions and approvals and is expected to close within 60 days.
Mr. Jean Malouin, AutoCanada's partner in Hunt Club Nissan (Ottawa) and Barrhaven Nissan Open Point, will oversee the operations of the Dealerships as dealer principal with a 10% ownership interest. The Dealerships currently operate out of a shared 28,000 square foot leased facility with a 14 car showroom and 15 service bays. In 2014, the Dealerships retailed 727 new vehicles and 180 used vehicles. 417 Infiniti will be relocated to a standalone leased facility adjacent to 417 Nissan which will be renovated in accordance with Infiniti Retail Environment Design Initiative (IREDI) standards. The relocation is expected to occur by the end of 2016.
"We are very pleased to welcome the 417 Nissan and 417 Infiniti family into our new Ottawa platform and look forward to building upon their successes together with Mr. Malouin and Nissan Canada. Ottawa is an extremely attractive market and we are fortunate to partner with a dealer principal who has shown exceptional results in the region with Hunt Club Nissan. We would like to acknowledge the efforts of Nissan Canada in making this transaction possible," stated Tom Orysiuk, President and CEO of AutoCanada.
About AutoCanada Inc.
AutoCanada is one of Canada's largest multi-location automobile dealership groups, currently operating 52 franchised dealerships, comprised of 60 franchises, in eight provinces and has over 3,750 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.
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, the closing of the acquisition and the projected strength of the Ontario and Ottawa automotive retail market. These forward-looking statements and information are based on certain key expectations and assumptions made by AutoCanada, including the assumption that 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, the risk that the acquisition will not be completed as proposed or at all and 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 proposed acquisition 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.
Additional information about AutoCanada Inc. is available at www.sedar.com and AutoCanada'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