EDMONTON, November 17, 2014 /CNW/ - AutoCanada Inc. ("AutoCanada" or the "Company") (TSX: ACQ) announced today that it has obtained approval from General Motors of Canada to purchase an 80% non-voting equity interest in Bridges Chevrolet Buick GMC, located in North Battleford, Saskatchewan ("Bridges Chevrolet"). The acquisition is expected to close November 24, 2014.
Originally founded and operated by John Brydges, Bridges Chevrolet has been a part of the North Battleford landscape since 1976. The dealership is currently operated by Mr. Walter Houk and partner Gerald Hardy, along with a team of more than 30 employees. Mr. Houk, Mr. Hardy and the Bridges Chevrolet team have continued on the tradition built over 37 years of sales and service.
In accordance with the terms of the ownership structure for GM dealerships approved by GM Canada, AutoCanada shall purchase an 80% non-voting equity interest, with Mr. Patrick J. Priestner, Chairman and Chief Executive Officer of AutoCanada, being named Dealer Operator and, together with other senior managers, shall personally purchase a 20% equity interest, with Mr. Priestner holding 100% voting control of the dealership. The transaction was reviewed and approved by AutoCanada's independent members of its Board of Directors.
The Company will also purchase the dealership land and facility which is approximately 18,076 square feet and situated on a 3.53 acre parcel of land. The dealership facility includes a 4 vehicle showroom, and 12 service bays. In 2013, the dealership retailed 396 new vehicles and 387 used vehicles.
"We are delighted to welcome the Bridges Chevrolet Buick GMC family to the AutoCanada family. We look forward to building on the tradition of great service under the leadership of Mr. Walter Houk and Mr. Gerald Hardy, and ensuring that Bridges continues with a strong presence in the North Battleford community. We would also like to thank General Motors of Canada for its continued support" stated Patrick J. Priestner.
AutoCanada is one of Canada's largest multi-location automobile dealership groups, currently operating 46 franchised dealerships 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 2013, our dealerships sold approximately 36,000 vehicles and processed approximately 364,000 service and collision repair orders in our 406 service bays during that time.
AutoCanada est l'un des plus importants groupes de concessions automobiles à établissements multiples du Canada. Elle exploite actuellement 46 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 2013, nos concessions ont vendu environ 36 000 véhicules et traité environ 364 000 demandes d'entretien et de réparation par suite de collision à nos 406 aires de service.
SOURCE: AutoCanada Inc.
For further information: Christopher Burrows, Vice-President & Chief Financial Officer, Phone: 780.509.2808, Email: [email protected]