The XLerate Group continues to make big moves this summer.
A week after announcing new majority ownership and less than two months after buying Liquid Motors, the company has expanded its reach into Louisiana.
XLerate said Thursday it has purchased Greater Shreveport-Bossier Auto Auction.
With this acquisition, which is the group’s 10th, XLerate now has 14 auction brands that include fixed-site and mobile sales throughout 11 states.
“GSBAA is the latest step in XLerate’s strategy to grow our business, footprint and service offerings by acquiring high-quality independent sales with strong operating management and demonstrated high service levels,” XLerate chief executive officer Cam Hitchcock said in a news release. “Steve Chiasson and Keith Hightower started GSBAA in 2008 and have since expanded and relocated the sale.”
The auction is located in Shreveport, La., and serves dealers and consignors in Louisiana, Texas and Arkansas.
Matt Chiasson, who is the son of co-founder Steve Chiasson, is the general manager of the auction and will remain in that role.
“We are pleased to officially welcome Matt and GSBAA into the XLerate family,” said XLerate executive vice president Chuck Tapp. “Matt is a proven operator with a keen focus on customer service. He has an intimate knowledge of the regional customer base and their expectations.”
Added Matt Chiasson: “GSBAA’s customers and employees will be well served by the resources and depth of product offerings that come with being part of the XLerate Group. I look forward to expanding GSBAA’s base of business and continuing to drive its strategic growth.”
In the release, Steve Chiasson said: “Keith Hightower and I are excited for our dealers and our auction family. Joining the XLerate Group gives GSBAA capabilities and relationships it did not have as a single auction. During our time in this industry, we have had the pleasure of working with so many great people. We say ‘Thank You!’ to everyone who has worked for, done business with, and continues to do business with GSBAA.”
Thursday’s news continues what has been a busy summer for XLerate.
On Sept. 2, it was announced that private equity firm Brightstar Capital Partners had entered a definitive agreement to acquire a majority stake in the auto auction and remarketing facilitation company.
Current owner Huron Capital and XLerate’s senior management team are retaining minority equity stakes.
And in July, XLerate announced that it had purchased Liquid Motors. It’s a move that can help bulk up XLerate’s digital sales, which the company says have seen significant growth in the last five years.
In another development related to the upcoming spinoff of Insurance Auto Auctions from KAR Auction Services, IAA Spinco Inc. — which will be renamed IAA — announced a proposed senior notes offering Monday morning.
Specifically, IAA said in Monday's news release it intends on offering (subject to market conditions) an aggregate principal amount of $400 million in senior notes due 2027. It provided an update on that Wednesday. It upped the service of the offering of 5.500% senior notes from $400 million to $500 million.
IAA said the net proceeds from the offering are slated to be used — along with an anticipated $800 million in borrowings from senior secured credit facilities that IAA plans to enter — towards paying a special dividend to KAR as well as spinoff-related fees and expenses.
“The proceeds of the notes offering will be held in escrow until satisfaction of the conditions precedent to the spin-off and certain other escrow release conditions,” IAA said in a news release Wednesday.
“The notes will be issued at an issue price of 100% and, if the escrow release conditions are satisfied, will be guaranteed on a senior unsecured basis on and after the escrow release date by the Company's existing and future domestic subsidiaries that will guarantee its proposed senior secured credit facilities,” it added.
The company anticipates that the offering will close on June 6, contingent on customary closing conditions.
IAA added: “The notes have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the "Securities Act"), any state securities laws or the securities laws of any other jurisdiction, and may not be offered or sold in the United States absent registration or an applicable exemption from registration. Accordingly, the notes are being offered and sold only to persons reasonably believed to be qualified institutional buyers in accordance with Rule 144A under the Securities Act and to non-U.S. persons outside the United States in reliance on Regulation S under the Securities Act.
“This press release does not constitute an offer to sell, or the solicitation of an offer to buy, any security and shall not constitute an offer, solicitation or sale in any jurisdiction in which such offer, solicitation or sale would be unlawful,” IAA said.
The spin-off was first announced in February 2018.
In April of this year, the planned spin-off reached what KAR chief executive Jim Hallett called “an important milestone”: The Internal Revenue Service provided KAR a favorable private letter ruling regarding the tax-free status of the IAA spin-off, KAR said in a news release on April 1.
Continuing its busy schedule of recent acquisitions and expansions of its existing auctions, Copart on Monday announced the opening of a new location in Fredericksburg, Va.
The facility, located at 4717 Massaponax Church Road in Fredericksburg, will serve Copart customers from Washington D.C. and from Richmond and Charlottesville, Va.
Copart Fredericksburg general manager Consuela Harrison said in a news release she and her team were excited to be located “in one of the most historic cities in our country.”
“We look forward to providing our buyers and sellers with the highest level of service with our people, processes and technology,” Harrison said.
Copart Fredericksburg will soon post auction times on its location page. Copart said eligible buyers will be able to use its patented VB3 online auction platform to bid on available inventory. Or during normal business hours, they can bid at the location’s kiosks.
“I am proud of our team's hard work in making this location a reality for our customers,” said Copart chief executive officer Jay Adair.
