EDMONTON, AB, Sept. 10, 2024 /CNW/ - AutoCanada Inc. ("AutoCanada" or the "Company") (TSX: ACQ) a leader in Canadian automotive retail, today announced the completion of the strategic divestiture of two Stellantis stores located in Ponoka, Alberta and Airdrie, Alberta. This decision aligns with the company's commitment to improve profitability and reduce leverage.

Paul Antony, Executive Chairman, stated, "This divestiture is the first strategic move we're making as part of AutoCanada's realignment. We are taking actions that allow us to concentrate our resources and efforts to improve core operations, optimize our cost structure, strengthen profitability and reduce leverage."

"We want to express our sincere gratitude to our dedicated employees and loyal customers at these locations," Paul Antony, Executive Chairman added. "Their support has been invaluable, and we are committed to ensuring a smooth transition during this process."

Financial Highlights

These dealerships generated $86.5 million in sales during the trailing 12-month period ending June 30, 2024. Total financial consideration to AutoCanada was paid in cash on closing. Proceeds from the sale will be used to reduce the amount outstanding under the Company's revolving credit facility. This transaction is expected to be immediately accretive to Adjusted EBITDA margin and earnings per share.

About AutoCanada

AutoCanada is a leading North American multi-location automobile dealership group currently operating 83 franchised dealerships, comprised of 28 brands, in eight provinces in Canada as well as a group in Illinois, USA. AutoCanada currently sells Acura, Alfa Romeo, Audi, BMW, Buick, Cadillac, Chevrolet, Chrysler, Dodge, FIAT, Ford, GMC, Honda, Hyundai, Infiniti, Jeep, Kia, Lincoln, Mazda, Mercedes-Benz, MINI, Nissan, Porsche, Ram, Subaru, Toyota, Volkswagen, and Volvo branded vehicles. In addition, AutoCanada's Canadian Operations segment currently 11 stand-alone collision centres within our group of 27 collision centres. In 2023, the Company generated revenue in excess of $6 billion and our dealerships sold over 100,000 retail vehicles.

Additional Information

Additional information about AutoCanada is available at the Company's website at www.autocan.ca and www.sedarplus.ca.

Certain statements contained in this press 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 identified 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. In particular, this press release contains forward-looking statements with respect to, among other things, our actions to improve core operations, optimize cost structure, strengthen profitability and reduce leverage, and the impact of the transaction on Adjusted EBITDA margin and earnings per share..

AutoCanada cautions that the foregoing forward-looking statements are subject to assumptions, risks and uncertainties and our ability to mitigate and address those risks and uncertainties. The Company's Annual Information Form and other documents filed with securities regulatory authorities (accessible through the SEDAR website at www.sedarplus.ca) describe the risks, material assumptions and other factors that could influence actual results and which are incorporated herein by reference. The forward-looking statements contained in this press release speak only as of the date hereof and AutoCanada assumes no obligation to publicly update or revise them to reflect new events or circumstances, except as may be required pursuant to applicable securities laws.

SOURCE AutoCanada Inc.