AutoCanada Inc. Announces Investment in a Second GM Dealership in Sherwood Park
EDMONTON, June 2, 2012 /CNW/ - AutoCanada Inc. ("AutoCanada" or the "Company")
(TSX: ACQ) announced today that it has purchased a 31% non-voting equity
interest in Petersen GMC Buick ("Petersen"), a dealership located in Sherwood
Park, Alberta. Petersen has been servicing the Sherwood Park and Greater
Edmonton area for over twenty-eight years and in 2011 sold 707 new vehicles
and 604 used vehicles.
In accordance with the terms of GM Canada's approval, AutoCanada shall make
its investment through a holding company together with Pat Priestner, Chief
Executive Officer of AutoCanada, and other senior managers, with Mr. Priestner
having 100% of the voting shares of the holding company and Mr. Priestner
named as Dealer Operator of Petersen. The holding company shall have a 51%
voting interest in Petersen, with Blaine and Todd Nicholson purchasing the
remaining 49% voting interest. The transaction was reviewed and approved by
AutoCanada's independent Board of Directors.
"We are pleased to add a Buick GMC dealership to our portfolio," stated Pat
Priestner. "Petersen has been a long-standing dealership in the Sherwood
Park area and is highly regarded for its outstanding customer service and
commitment to the community, and we are honoured to have the opportunity to
continue this tradition."
"As stated in our press release of May 1, 2012, in respect to any future GM
dealership acquisitions outside of Sherwood Park, we will seek to acquire a
100% ownership interest, in which AutoCanada would purchase an 80% non-voting
equity interest, with myself and other senior managers purchasing a 20% equity
interest; and I will have 100% voting control and be named Dealer Operator, in
accordance with GM Canada requirements," Pat Priestner stated.
AutoCanada is one of Canada's largest multi-location automobile dealership
groups, currently operating 25 franchised dealerships in six provinces and has
over 1,100 employees. AutoCanada currently sells Chrysler, Dodge, Jeep, Ram,
FIAT, Chevrolet, Infiniti, Nissan, Hyundai, Subaru, Mitsubishi, and Volkswagen
branded vehicles. In 2011, our dealerships sold approximately 28,000
vehicles and processed approximately 300,000service and collision repair
orders in our 333 service bays during that time.
Additional information about AutoCanada Inc. is available at www.sedar.com and
the Company's website at www.autocan.ca.
Forward Looking Statements
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 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",
"expect", "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 this document.
The Company's Annual Information Form and other documents filed with
securities regulatory authorities (accessible through the SEDAR website
www.sedar.com describe the risks, material assumptions and other factors that
could influence actual results and which are incorporated herein by reference.
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 of 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
Jeff Christie, CA Vice-President, Finance
Phone: (780) 732-7164
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CO: AutoCanada Inc.
NI: AUT RET
-0- Jun/02/2012 17:13 GMT
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