28 Mar, 2018, 17:22 ET
EDMONTON, March 28, 2018 /CNW/ - AutoCanada (TSX:ACQ) (or the "Company") today announced that the outstanding balance of approximately $18.4 million of the participatory loans extended to PPH Holdings Ltd. ("PPH") will be repaid in full, as of March 31, 2018. These loans will be terminated and any associated royalties and fees that are payable by PPH to the Company under the terms and conditions of the loans will also cease as of the same date.
Proceeds from the repayment will be applied to the Company's recent acquisition of the Grossinger Auto Group in Illinois. That acquisition added US$401 million (C$513 million) in revenue from dealerships representing 11 different manufacturers, including four new brands, to the AutoCanada portfolio. It included eight metro dealerships in Chicagoland as well as six luxury and premium brands in an auto mall under one roof in Bloomington/Normal, Illinois.
PPH is a company controlled by Mr. Patrick Priestner, AutoCanada's former CEO and founder. Subsequent to repayment, the Company will no longer have any investments in Mr. Priestner's dealership companies.
AutoCanada is Canada's largest multi-location automobile dealership group by volume, currently operating 54 franchised dealerships, comprised of 62 franchises, in eight provinces and has over 3,500 employees. AutoCanada currently sells Chrysler, Dodge, Jeep, Ram, FIAT, Alfa Romeo, Chevrolet, GMC, Buick, Cadillac, Infiniti, Nissan, Hyundai, Subaru, Mitsubishi, Audi, Volkswagen, Kia, Mazda, Mercedes-Benz, Smart, BMW and MINI branded vehicles. In 2017, the Company's dealerships sold approximately 63,000 vehicles and processed approximately 870,000 service and collision repair orders in our 999 service bays generating revenue in excess of C$3 billion.
Forward Looking Statements
Certain statements contained in this news release are forward‑looking statements and information (collectively "forward‑looking statements"), within the meaning of the applicable Canadian securities legislation. We hereby provide cautionary statements identifying important factors that could cause our actual results to differ materially from those projected in these forward‑looking statements. Any statements that express, or involve discussions as to, expectations, beliefs, plans, objectives, assumptions or future events or performance (often, but not always, through the use of words or phrases such as "will likely result", "are expected to", "will continue", "is anticipated", "projection", "vision", "goals", "objective", "target", "schedules", "outlook", "anticipate", "expect", "estimate", "could", "should", "plan", "seek", "may", "intend", "likely", "will", "believe" and similar expressions) are not historical facts and are forward‑looking and may involve estimates and assumptions and are subject to risks, uncertainties and other factors some of which are beyond our control and difficult to predict. Accordingly, these factors could cause actual results or outcomes to differ materially from those expressed in the forward‑looking statements. Therefore, any such forward‑looking statements are qualified in their entirety by reference to the factors discussed throughout release.
Further, any forward‑looking statement speaks only as of the date on which such statement is made, and, except as required by applicable law, we undertake no obligation to update any forward‑looking statement to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events. New factors emerge from time to time, and it is not possible for management to predict all such factors and to assess in advance the impact of each such factor on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward‑looking statement.
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, Senior Vice-President & Chief Financial Officer, Phone: 780.509.2808, Email: [email protected]
Share this article