AutoCanada signs deals to sell 13 U.S. dealerships

Executive Summary

• AutoCanada Inc. has entered into definitive agreements to sell 13 franchised dealerships within its U.S. operations segment for expected aggregate proceeds of approximately $82.7 million.
• The transaction includes approximately $6.4 million for real estate and is subject to customary closing conditions, including OEM approvals, with an anticipated closing in the second half of 2025.
• This divestiture is part of the company's ongoing strategy to exit its U.S. market, which was previously classified as a discontinued operation in financial statements for the year ended December 31, 2024.

Key Details

• Transaction Value: Expected aggregate proceeds of approximately $82.7 million.
• Real Estate Component: Approximately $6.4 million of the proceeds are attributed to real estate.
• Assets Divested: 13 franchised dealerships across multiple purchasers, specifically including:
  • Autohaus of Peoria (Audi, Mercedes-Benz, Porsche, and Volkswagen dealerships)
  • Bloomington Automall (Audi, Lincoln, Mercedes-Benz, Subaru, and Volkswagen dealerships)
  • Chevrolet of Palatine
  • Crystal Lake Chrysler Dodge Jeep Ram
  • Hyundai of Palatine
  • North City Honda
• Closing Conditions: Subject to customary conditions, including Original Equipment Manufacturer (OEM) approvals.
• Timeline: Anticipated to close in the second half of 2025.
• Strategic Context: AutoCanada continues to divest its remaining four U.S. dealerships (Hyundai of Lincolnwood, Kia of Lincolnwood, Toyota of Lincoln Park, and Toyota of Lincolnwood) following the classification of the U.S. operations segment as a discontinued operation for the fiscal year ended December 31, 2024.

Notable Quotes

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