EDMONTON, Oct. 19, 2015 /CNW/ - AutoCanada Inc. ("AutoCanada" or the "Company") (TSX: ACQ) announced today that it has reached agreement to purchase the operating assets of Hunt Club Nissan Ltd. ("Hunt Club"), which owns and operates a Nissan dealership located in Ottawa, Ontario. As part of the transaction, AutoCanada has also acquired the right to a new Nissan open point dealership in Ottawa, Ontario, to be operated out of a new leased facility in the Southwest part of Ottawa, designed to Nissan image standards, with construction anticipated to be completed in 2016.
Hunt Club is one of Ontario's most successful Nissan dealerships and shall continue to be operated by the current owner, Mr. Jean Malouin. Mr. Malouin will remain as dealer principal and will retain an ownership interest in both dealerships. Hunt Club operates from a five acre, 27,608 square foot leased facility which includes a 12 car showroom, 13 service bays, 4 detail bays and 1 alignment bay. In 2014, the dealership retailed 1,109 new vehicles and 452 used vehicles. The transaction is subject to normal closing conditions and is expected to close within 30 days.
"The acquisition of Hunt Club Nissan is a very exciting opportunity for the Company, increases our Ontario presence, and allows for the creation of a Greater Ottawa platform – a highly desirable region with one of Canada's highest per capita average incomes. We are fortunate to partner with the Hunt Club Nissan family to build upon its excellent reputation and operational success, and we want to thank the employees of both Hunt Club and our Manufacturer partner, Nissan Canada, for all of their efforts to make this acquisition possible," said Tom Orysiuk, President and CEO of AutoCanada.
About AutoCanada Inc.
AutoCanada is one of Canada's largest multi-location automobile dealership groups, currently operating 51 franchised dealerships, comprised of 59 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.
AutoCanada est l'un des plus importants groupes de concessions automobiles à établissements multiples du Canada. Elle exploite actuellement 51 concessions franchisées dans huit provinces et emploie plus de 3 600 employé(e)s. AutoCanada vend actuellement des véhicules de marques Chrysler, Dodge, Jeep, Ram, FIAT, Chevrolet, GMC, Buick, Cadillac, Infiniti, Nissan, Hyundai, Subaru, Mitsubishi, Audi, Volkswagen, Kia, BMW et MINI. En 2014, nos concessions ont vendu environ 57 000 véhicules et traité environ 786 000 demandes d'entretien et de réparation par suite de collision à nos 822 aires de service.
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 projected strength of the Ontario and Ottawa automotive retail market and maintenance of income levels in the region. 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 the Company's website at www.autocan.ca.
SOURCE AutoCanada Inc.
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