EDMONTON, Feb. 23, 2016 /CNW/ - AutoCanada Inc. ("AutoCanada" or the "Company") (TSX: ACQ) announced today that it has reached an agreement to sell the operating assets of Newmarket Infiniti Nissan in Newmarket, Ontario (collectively, the "Dealership") along with the real estate on which the Dealership is located. The sale is expected to close this week and net proceeds will be used reduce indebtedness under the Company's revolving credit facility by approximately $11,500,000. Additionally, the Company will proceed to sell excess lands previously acquired to facilitate construction of a separate facility for Newmarket Infiniti.
"As part of our regular evaluation of dealership performance, an unsolicited opportunity was presented to Management. Following a thorough review, management concluded that the dealership sale proceeds, when combined with the additional benefit of reducing the Company's obligation to build a separate facility for Newmarket Infiniti, made the transaction the right thing to do from a long term shareholder return perspective," said Thomas Orysiuk, President and Chief Executive Officer.
About AutoCanada Inc.
AutoCanada is one of Canada's largest multi-location automobile dealership groups, currently operating 54 franchised dealerships, comprised of 62 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 54 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 completion of the sale of the Dealership and the use of proceeds from the sale of the Dealership. 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 sale of the dealership 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.
For further information: Christopher Burrows, Vice-President & Chief Financial Officer, Phone: 780.509.2808, Email: firstname.lastname@example.org