AutoCanada has made “meaningful progress” on divesting its U.S. dealerships and has entered a definitive agreement on its remaining nine dealerships south of the border (which comprise two individual storefronts).

The retailer said in its latest earnings release that it, “expects additional proceeds from related land dispositions, previously identified as held for sale, of up to $19 million.”

Gross proceeds to date from the divestiture have reached $106 million, excluding working capital. AutoCanada remains on course to generate the anticipated $115 million to $130 million from the U.S. divestitures, it said.

“Proceeds from these transactions are expected to be directed toward debt reduction and to reinforce the company’s strategic focus on its core Canadian dealership and collision operations,” AutoCanada said in the release.

“All transactions remain subject to customary closing conditions, including OEM approvals. Upon completion, the divestiture program is expected to enhance financial flexibility, strengthen the balance sheet, and accelerate progress toward the company’s target leverage range of 2.0x to 3.0x total net funded debt to bank EBITDA.”

During the quarter, AutoCanada sold Hyundai of Lincolnwood in Illinois on April 9, for cash consideration of $3.1 million plus closing adjustments.

It sold Toyota of Lincolnwood in Illinois on June 22 for $42.4 million in cash consideration plus closing adjustments.