EDMONTON, May 16 /CNW/ - AutoCanada Inc. ("AutoCanada" or the "Company")
(TSX: ACQ) today announced the entering into of an agreement of
purchase and sale for its Colombo Chrysler Jeep Dodge dealership,
located in Woodbridge Ontario. Colombo Chrysler Jeep Dodge sold 733
new and used vehicles in 2010. The Company anticipates the closing of
the purchase and sale within the next 30 to 45 days.
"Although the Company is very pleased with the performance of its
Chrysler Jeep Dodge dealerships generally, profitability at Colombo
Chrysler Jeep Dodge has been a challenge for Management. As the current
facility lease was due to expire within the next 18 months, a
relocation with its attendant costs was likely, and as it is expected
that the impact of this sale on the Company's net income will be
positive for 2011, it was determined that shareholder value would be
best served by the sale of the dealership, allowing Management to
better focus its efforts and resources on its other dealerships",
stated Gordon Barefoot, Chair of AutoCanada.
AutoCanada is one of Canada's largest multi-location automobile
dealership groups, currently operating 23 franchised dealerships in
British Columbia, Alberta, Manitoba, Ontario, New Brunswick and Nova
Scotia. In 2010, our dealerships sold approximately 24,000 vehicles and
processed approximately 317,000 service and collision repair orders in
our 339 service bays.
Additional information about AutoCanada Inc. is available at the
Company's website at www.autocan.ca and www.sedar.com.
SOURCE AutoCanada Inc.
For further information:
Jeff Christie, CA
Phone: (780) 732-7164