EDMONTON, Aug. 24, 2015 /CNW/ - AutoCanada Inc. ("AutoCanada") (TSX: ACQ) announced today that it has obtained approval from General Motors of Canada ("GM Canada") to purchase an 80% non-voting equity interest in the assets of Don Folk Chevrolet, a dealership located in Kelowna, British Columbia. The acquisition is subject to customary closing conditions and is expected to close within 30 days.
Don Folk Chevrolet was founded over sixty years ago and after joining the dealership in 1971, Mr. Don Folk has led the growth of the dealership from 22 employees to over 70 full time employees. The dealership operates from a facility which includes a 15 car showroom, 14 service bays and 6 detail bays. In 2014, the dealership retailed 452 new vehicles and 304 used vehicles. The acquisition also includes all of the assets of Don Folk Autobody, a standalone autobody shop which is located next to the dealership.
In accordance with the terms of the previously announced ownership structure for GM dealerships approved by GM Canada, AutoCanada will purchase an 80% non-voting equity interest in the acquired assets. Mr. Pat Priestner, Executive Chair of AutoCanada, shall be named Dealer Operator, and, together with other senior managers, shall 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.
"We are delighted to welcome the Don Folk Chevrolet team to the AutoCanada family. We look forward to building on the tradition of great service under the leadership of Mr. Folk, and ensuring that Don Folk Chevrolet continues with a strong presence in Kelowna. We would also like to thank General Motors of Canada for their continued support" stated Mr. Priestner.
AutoCanada is one of Canada's largest multi-location automobile dealership groups, currently operating 49 dealerships, comprised of 57 franchises, in 8 provinces and has over 3,500 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.
AutoCanada est l'un des plus importants groupes de concessions automobiles à établissements multiples du Canada. Elle exploite actuellement 49 concessions franchisées dans huit provinces et emploie plus de 3 500 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 successful completion of the acquisition of Don Folk Chevrolet and the success of Don Folk Chevrolet once acquired. These forward-looking statements and information are based on certain key expectations and assumptions made by AutoCanada, including the assumption that all necessary requirements and conditions will be satisfied and 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 of Don Folk Chevrolet will be delayed or not completed, the success of Don Folk Chevrolet if acquired, along with 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.
SOURCE AutoCanada Inc.
For further information: Christopher Burrows, Vice-President & Chief Financial Officer, Phone: 780.509.2808, Email: [email protected]