EDMONTON, March 28, 2018 /CNW/ - AutoCanada (TSX:ACQ) (or
the "Company") today announced that the outstanding balance of
approximately $18.4 million of the
participatory loans extended to PPH Holdings Ltd. ("PPH") will be
repaid in full, as of March 31, 2018.
These loans will be terminated and any associated royalties and
fees that are payable by PPH to the Company under the terms and
conditions of the loans will also cease as of the same date.
Proceeds from the repayment will be applied to the Company's
recent acquisition of the Grossinger Auto Group in Illinois. That acquisition added US$401 million (C$513
million) in revenue from dealerships representing 11
different manufacturers, including four new brands, to the
AutoCanada portfolio. It included eight metro dealerships in
Chicagoland as well as six luxury and premium brands in an auto
mall under one roof in Bloomington/Normal,
Illinois.
PPH is a company controlled by Mr. Patrick Priestner, AutoCanada's former CEO and
founder. Subsequent to repayment, the Company will no longer have
any investments in Mr. Priestner's dealership companies.
About AutoCanada
AutoCanada is Canada's largest multi-location
automobile dealership group by volume, currently operating 54
franchised dealerships, comprised of 62 franchises, in eight
provinces and has over 3,500 employees. AutoCanada currently sells
Chrysler, Dodge, Jeep, Ram, FIAT, Alfa Romeo, Chevrolet,
GMC, Buick, Cadillac, Infiniti, Nissan, Hyundai, Subaru,
Mitsubishi, Audi, Volkswagen, Kia, Mazda, Mercedes-Benz, Smart, BMW
and MINI branded vehicles. In 2017, the Company's dealerships sold
approximately 63,000 vehicles and processed approximately 870,000
service and collision repair orders in our 999 service bays
generating revenue in excess of C$3
billion.
Forward Looking Statements
Certain statements contained in this news release are
forward‑looking statements and information (collectively
"forward‑looking statements"), within the meaning of the applicable
Canadian securities legislation. We hereby provide cautionary
statements identifying important factors that could cause our
actual results to differ materially from those projected in these
forward‑looking statements. Any statements that express, or involve
discussions as to, expectations, beliefs, plans, objectives,
assumptions or future events or performance (often, but not always,
through the use of words or phrases such as "will likely result",
"are expected to", "will continue", "is anticipated",
"projection", "vision", "goals", "objective", "target",
"schedules", "outlook", "anticipate", "expect", "estimate",
"could", "should", "plan", "seek", "may", "intend", "likely",
"will", "believe" and similar expressions) are not historical facts
and are forward‑looking and may involve estimates and assumptions
and are subject to risks, uncertainties and other factors some of
which are beyond our control and difficult to predict. Accordingly,
these factors could cause actual results or outcomes to differ
materially from those expressed in the forward‑looking statements.
Therefore, any such forward‑looking statements are qualified in
their entirety by reference to the factors discussed throughout
release.
Further, any forward‑looking statement speaks only as of the
date on which such statement is made, and, except as required by
applicable law, we undertake no obligation to update any
forward‑looking statement to reflect events or circumstances after
the date on which such statement is made or to reflect the
occurrence of unanticipated events. New factors emerge from time to
time, and it is not possible for management to predict all such
factors and to assess in advance the impact of each such factor on
our business or the extent to which any factor, or combination of
factors, may cause actual results to differ materially from those
contained in any forward‑looking statement.
Additional Information
Additional information about AutoCanada Inc. is available
at www.sedar.com and the Company's website
at www.autocan.ca.
SOURCE AutoCanada Inc.