AUTOCANADA ACQUIRES KAVIA AUTO BODY IN SASKATOON, SASKATCHEWAN
EDMONTON, AB, October 31, 2022 /CNW/ – AutoCanada Inc. (“AutoCanada” or the “Company”) (TSX: ACQ), a multi-location North American auto dealership group, announced today that it has acquired Kavia Auto Body, a collision center based in Saskatoon, Saskatchewan.
Kavia Autobody is an SGI elite collision center and has provided excellent collision services Saskatoon and surroundings for almost 40 years. The store also has certifications from Tesla, GM, Ford, Kia, Stellantis, Nissan, Infiniti, Genesis, Honda, Acura, Subaru, and Hyundai. The company operates from a state-of-the-art facility and is strategically located near two AutoCanada dealerships: Dodge City Auto and Saskatoon Motor Products. This acquisition represents a continuation of the Company’s goal of continuing to expand and develop its national accident center network to align with AutoCanada’s dealer network.
“The addition of this well run business continues the strategic expansion of our national collision presence in markets that complement our existing dealers,” said Executive Chairman, Paul Anton. “Our focus remains on supporting our customers and OEM partners throughout the vehicle ownership lifecycle – which includes repairing vehicles in accordance with OEM-recommended repair procedures and using recommended OEM parts to ensure the integrity of the repaired vehicles. Kavia Auto Body has built a reputation for excellence and quality in the servicing of domestic and imported vehicles in the Saskatoon market and we look forward to continuing his legacy into the future.”
The detected collision center generates over $5.5 million in annual sales. The transaction will be funded from a drawing on the Company’s credit facility and is expected to contribute to 2022 earnings.
AutoCanada is a leading multi-location North American auto dealership group that currently operates 81 franchised dealerships representing 28 brands in eight provinces Canadaas well as a group in Illinois, United States. AutoCanada currently sells Chrysler, Dodge, Jeep, Ram, FIAT, Alfa Romeo, Chevrolet, GMC, BuickCadillac, Ford, Infiniti, Nissan, Hyundai, Subaru, Audi, Volkswagen, Kia, Mazda, Mercedes-Benz, BMW, MINI, Volvo, Toyota, LincolnAcura, Honda and Porsche vehicles. In addition, the Company’s Canadian business segment currently operates three used vehicle dealerships and an auction business supporting the Used Digital Retail Division, the RightRide Division operates 11 locations and seven standalone collision centers (within our group of 22 collision centers). In 2021, our dealers sold approximately 86,000 vehicles and processed over 800,000 service and collision repair orders across our 1,303 service bays, generating over 4 billion dollars.
Additional information about AutoCanada Inc. is available at www.sedar.com and on the company’s website at www.autocan.ca.
Certain statements in this press release constitute forward-looking statements and information (collectively, “forward-looking statements”) within the meaning of applicable Canadian securities laws. We provide cautionary statements that identify important factors that could cause our actual results to differ materially from those projected in these forward-looking statements. Any statements expressing or discussing (often, but not always, through the use of words or phrases such as “is likely to result”, “expected to “, “to be continued”, “expected”, “forecast”, “vision”, “goals”, “objective”, “target”, “timelines”, “outlook”, “anticipate”, “expect”, ” estimate “, “could”, “should”, “plan”, “aim”, “may”, “intend”, “likely”, “will”, “believe” and similar expressions) are not historical facts and are forward-looking This press release contains forward-looking statements regarding, among other things, the future operating results of the acquired dealers, the successful integration of such dealers into AutoCanada’s business, and the growth of the Company’s collision and R&I divisions.
The forward-looking statements contained in this press release are not guarantees of future performance and should not be relied upon unduly. Readers are cautioned that forward-looking statements are based on current expectations, estimates and projections, which inherently involve a number of known and unknown risks and uncertainties that could cause actual results to differ materially from those anticipated in the forward-looking statements described. These known and unknown risks and uncertainties include, but are not limited to: future results of operations, the impact of the COVID-19 pandemic on our operations, events disrupting vehicle or parts supplies to AutoCanada’s OEMs, financial condition and liquidity, and the duration of such effects; possible changes in the regulatory and legal environment; volatility in interest and tax rates; operational risks inherent in the automotive retail industry; and changes in general economic conditions, including capital and credit markets.
Forward-looking statements involve estimates and assumptions and are subject to risks, uncertainties and other factors, some of which are beyond our control and are difficult to predict. Accordingly, actual outcomes or results may differ materially from those projected in the forward-looking statements. Specifically, in presenting its forward-looking statements, AutoCanada has made assumptions concerning, among other things, the future operating results of the acquired dealers, the successful integration of the acquired dealers into AutoCanada’s platform, growth opportunities at the acquired dealers, and growth opportunities for our Collision and Collision divisions RightRide.
AutoCanada cautions that the foregoing list of assumptions, risks and uncertainties is not exhaustive. The Company’s Annual Information Form and other documents filed with securities regulators (accessible through the SEDAR website at www.sedar.com) describe the risks, significant assumptions and other factors that could affect actual results, which are incorporated herein by reference. The forward-looking statements contained in this press release speak only as of the date of this release and AutoCanada undertakes no obligation to publicly update or revise them to reflect new events or circumstances, except as required by applicable securities laws.
SOURCE AutoCanada Inc.
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