AUTOCANADA CLOSES SALE OF TOYOTA OF LINCOLNWOOD, ADVANCING U.S. EXIT

Executive Summary

• AutoCanada completed the sale of Toyota of Lincolnwood in Illinois for approximately $40 million in cash.
• The transaction brings cumulative proceeds from U.S. divestitures to ~$106 million, aligning with management's guidance to reach the upper end of the previously disclosed $115–$130 million total proceeds range.
• Net proceeds will be applied to reduce the Company's revolving credit facility, with the remaining U.S. dealership portfolio expected to be fully divested in 2026.

Key Details

• Transaction Target: Toyota of Lincolnwood, Lincolnwood, Illinois
• Consideration: ~$40.1 million in cash for goodwill and fixed assets, excluding inventory and net working capital
• Cumulative U.S. Divestiture Proceeds: ~$105.9 million from seven completed sales since the U.S. segment was classified as discontinued operations
• Remaining Divestiture Timeline: All remaining U.S. dealerships expected to be sold in 2026
• Use of Proceeds: Net proceeds to be used to reduce the outstanding balance of the Company's revolving credit facility
• Sold Entity Financials (12 months ended March 31, 2026): Revenue of ~$79.4 million; Net income of $5.8 million
• Discontinued Operations Context: U.S. operations classified as discontinued at end of 2024; generated a net loss from discontinued operations of $103.4 million in 2024
• Strategic Focus: Divestiture supports management's decision to concentrate capital and management attention on core Canadian dealership and collision repair operations

Notable Quotes

• "The sale of Toyota of Lincolnwood marks a significant milestone in our U.S. exit and reflects the progress we have made on the strategic decision to focus our capital and management attention on our core Canadian dealership and collision operations," said Samuel Cochrane, Chief Executive Officer and Interim Chief Financial Officer of AutoCanada. "While the divestiture process has taken longer than originally anticipated, we have now generated approximately $106 million of proceeds from our U.S. dealership sales. Supported by the underlying real estate value associated with our remaining U.S. stores, we remain confident in achieving toward the high end of our expected $115–$130 million proceeds range, and completing the sale of our remaining U.S. dealerships this year."