EDMONTON, Sept. 28, 2015 /CNW/ - AutoCanada Inc. ("AutoCanada" or the "Company") (TSX: ACQ) announced today that it has reached agreement to purchase the operating assets of Grove Dodge Chrysler Jeep Ltd. ("Grove Dodge"), which owns and operates a Chrysler Dodge Jeep Ram dealership located in Spruce Grove, Alberta.
Grove Dodge is owned and operated by Mr. Terry Martens and Mr. Josh Davis. AutoCanada is very pleased to announce that Mr. Josh Davis will remain with the dealership and will retain a ten percent ownership interest. The dealership operates from a 34,000 square foot leased facility which includes an 8 car showroom, 13 service bays, 3 detail bays and 1 alignment bay. In 2014, the dealership retailed 809 new vehicles and 407 used vehicles. The transaction is subject to normal closing conditions and is expected to close within 30 days.
"Grove Dodge has a strong history in the Spruce Grove region and we look forward to solidifying our very strong Chrysler Dodge Jeep Ram platform in Alberta, which now represents three dealerships in the each of the key Calgary and Edmonton regions. Although currently challenged, the Alberta market has been a long standing above average performer in retail automotive and we expect this market to continue to perform. We consider Grove Dodge to provide the Company an opportunity to further deliver long-term shareholder value through the acquisition of a great dealership at a time when it became available," stated Tom Orysiuk, President and CEO of AutoCanada.
About AutoCanada Inc.
AutoCanada is one of Canada's largest multi-location automobile dealership groups, currently operating 50 franchised dealerships, comprised of 58 franchises, in eight 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 during that time.
AutoCanada est l'un des plus importants groupes de concessions automobiles à établissements multiples du Canada. Elle exploite actuellement 50 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 approval of the acquisition by the manufacturer and the projected strength of the Alberta automotive retail market. 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 OEM approval will not be obtained for the acquisition and the acquisition 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.
SOURCE AutoCanada Inc.
For further information: Christopher Burrows, Vice-President & Chief Financial Officer, Phone: 780.509.2808, Email: [email protected]