EDMONTON, Nov. 28, 2016 /CNW/ - AutoCanada Inc. ("AutoCanada") (TSX: ACQ) announced today that it has entered into an agreement to purchase all of the operating assets of 993527 Ontario Limited, which operates Guelph Hyundai, located in Guelph, Ontario (the "Dealership"). The transaction is subject to customary closing conditions and approvals and is expected to close within 30 days.
As part of the transaction, AutoCanada will purchase the Dealership lands and 29,726 square foot facility with a 14 car showroom and 14 service bays. This new facility was constructed in 2014 and was the first Hyundai dealership in Canada to reflect the new Global Dealership Space Identity (GDSI) of Hyundai. In 2015, this Dealership retailed 673 new vehicles and 173 used vehicles, with an annual revenue of approximately $31 million.
"We are extremely pleased to welcome Guelph Hyundai into our Ontario dealer group. The dealership recently owned and operated by Graham Dennis has a long history in the Guelph community, serving their customers for decades. AutoCanada is pleased to add to our cluster dealership model in the Guelph area and increase our business in Ontario" stated Steven Landry, Chief Executive Officer of AutoCanada.
About AutoCanada Inc.
AutoCanada is one of Canada's largest multi-location automobile dealership groups, currently operating 54 franchised dealerships, comprised of 62 franchises, in eight provinces and has over 3,800 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 2015, our dealerships sold approximately 62,800 vehicles and processed approximately 848,000 service and collision repair orders in our 912 service bays during that time.
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 receipt of requisite approvals for the acquisition and the projected strength of the Ontario 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 all requisite approvals 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 in Ontario. 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.
Additional information about AutoCanada Inc. is available at www.sedar.com and the Company's website at www.autocan.ca.
SOURCE AutoCanada Inc.
Image with caption: "Guelph Hyundai (CNW Group/AutoCanada Inc.)". Image available at: http://photos.newswire.ca/images/download/20161128_C4238_PHOTO_EN_826106.jpg
For further information: Christopher Burrows, Vice-President & Chief Financial Officer, Phone: 780.509.2808, Email: email@example.com