Mercedes-Benz Canada recently announced that Groupe Park Avenue automobile consortium acquired Mercedes-Benz de Quebec, the dealer group’s second Mercedes-Benz franchise purchase.
Groupe Park Avenue acquired its Silver Star Montreal dealership just last year.
The group purchased Mercedes-Benz de Quebec from Chatel Automobiles Ltee, which operated the dealership for almost six decades.
Maurice Parent, owner of Chatel Automobiles Ltee, moved the dealership to its current location in 1974.
"We are fortunate to be taking on a dealership with a proven track record — Maurice and his team deserve our recognition and our gratitude. They are starting us off on the strongest possible footing as we undertake further expansion in a competitive market," Groupe Park Avenue president and chief executive officer Norman Hebert said in a news release.
"A well-respected presence in the community, a solid team in place and the brand's unprecedented successes in this market made acquiring Mercedes-Benz de Quebec a sound business decision for Groupe Park Avenue."
The Mercedes-Benz dealer recognition program has recognized Parent as a "Star Dealer" 15 times. Parent began selling the Mercedes-Benz brand in the mid-1960s, according to Mercedes-Benz Canada.
"Mercedes-Benz Canada welcomed Norman Hebert to the dealer network last year, when Groupe Park Avenue acquired Silver Star Montreal. Since then, the dealership's success is a testament to the skill and expertise of Norman and his team," Mercedes-Benz Canada president and chief executive officer Brian Fulton said in the release.
"I'd also like to take a moment to acknowledge the important legacy Maurice Parent has built over the past sixty years. His hard work and unwavering dedication to the brand have been truly remarkable. He has been a real credit to this organization, a true pioneer, and Mercedes-Benz Canada's other dealers join me in wishing him all the best," he said.
There will be no significant staff changes at Mercedes-Benz de Quebec, according to Mercedes-Benz Canada.
Tommy Caron, the dealership’s general manager, will continue to manage the dealership.
On Friday, Apex Inspection Solutions announced it is being acquired by Hanover, Germany-based TÜV Nord Group. Officials said in a news release to Auto Remarketing Canada that the partnership is an ideal fit, as both businesses align their initiatives toward being responsive to ever-changing economic conditions with a constant focus on providing the best service on the market.
By partnering with TÜV Nord, Apex highlighted that it will continue to provide customers with top-tier vehicle inspections while maintaining and building upon the high level of customer service and regarded reputation the company has achieved over the past eight years.
Apex added that the additional resources that TÜV Nord will provide, coupled with the detailed inspection reporting methodology practiced by both companies, will result in a win-win scenario for both companies, Apex’s legions of loyal customers, and an anticipated flood of new ones as well.
“We plan to pour additional resources into the market,” said Craig Martin, director of Canadian operations and managing partner at Apex Inspection Solutions.
Martin, who has been with Apex since the company was founded in 2009, will continue to occupy his current role moving forward. His area of responsibility is set to increase, however, and Martin emphasized that he is prepared for the challenges that might be ahead.
“With the support from TÜV Nord, we will be rapidly expanding our field network and client base,” Martin said. “We will also be adding on additional services for OEMs, captives and consigners as well and with the reputation for all that TÜV Nord Group has achieved not only in Europe, but around the globe. It puts us in a very good position to capitalize on current growth opportunities along with some new exciting segments yet to be seen in our business.
“We are truly excited to be a part of the TÜV family and look forward to the future with them,” Martin went on to say.
Ralph Dollenberg, senior vice president and head of international business development manager for TÜV Mobility, a division of TÜV Nord Group, explained how the acquisition developed.
“TÜV Nord has had Apex Inspection Solutions on its radar for some time now,” Dollenberg said. “The company has managed to grow its customer base over the years without sacrificing the high level of customer service and meticulous documentation required in the auto inspection business. That’s not easy in today’s ultra-competitive business environment.
“It’s this passion for doing things right AND doing things the right way that makes Apex Inspection Solutions a perfect partner for TÜV Nord Group. We’re hoping to continue, hand-in-hand, down the road to future success,” he continued.
More details about Apex Inspection Solutions offers, including services at lease end, collision appraisals, certified pre-owned inspections and hail damage estimation can be found at www.apexinspections.ca.
Apex & TradeHelper.ca partner to boost online auction activities
In other company news, Apex Inspection Solutions also finalized a new partnership with TradeHelper.ca, a Laval-based online vehicle auction service currently expanding into Ontario after achieving great success in the province of Quebec.
“In our efforts to better serve our clients we are always looking for ways to improve our product offering and continuously evolve,” TradeHelper president and chief executive officer Karl Tremblay said. “Our partnership with Apex Inspection Solutions is part of that evolution.
“Their detailed inspection reports and reporting methodologies are well-known in the industry and this partnership will allow us the opportunity to offer a standardized approach to our clients' capture and inspection needs,” Tremblay continued.
Both companies highlighted that having a vehicle properly inspected by a company like Apex Inspection Solutions before sealing the deal not only eases the concerns of potential buyers, there’s a “ripple effect” in that more buyers will be attracted to online vehicle auctions such as those featured at TradeHelper.
In a nutshell, this partnership is a win-win-win, with the third “winners” being online vehicle buyers and sellers.
“To say that e-commerce has changed the second-hand vehicle buying experience for the better is a vast understatement but as with all technological breakthroughs, there are pros and cons,” Martin said. “Sure, online buying and selling couldn’t be more convenient, but there’s still a lingering sense of discomfort with the process.
“Many customers feel a lack of transparency when you’re not dealing face-to-face with the buyer and the vehicle is literally out of reach. That’s where Apex comes in,” he continued. “Our team of professional and skilled inspectors collectively offer our customers over 100 years of vehicle estimating and inspection experience. We’ve built our reputation on removing the uncertainty from these types of transactions.”
Martin insisted that sellers will also benefit from Apex Inspection Solutions’ proven expertise. A detailed inspection report from Apex can bolster the seller should the buyer find fault with their purchase, either at the time of transaction or shortly thereafter.
“Honest sellers don’t need (and won’t get) that kind of hassle; those less trustworthy will find themselves squeezed out of the market when they can neither support nor back up their claims to a vehicle’s integrity,” Apex said.
TradeHelper’s point-man for the company’s Ontario growth strategy is Simon Laurin, director of sales for Ontario.
“At TradeHelper.ca, we are dedicated to providing our clients with an exceptional level of customer service,” Laurin said. “So naturally we would look for a partner who is dedicated to providing the same; Apex is that partner.”
Laurin added that he and Martin have worked together in the past and both are looking forward to renewing their association.
“I’m very excited to once again be working with Craig and his team at Apex Inspections Solutions,” Laurin said. “Apart from the fact that this partnership will bring a fair and standardized approach to the vehicle capture process on our platform, it will also allow us to provide our clients with an impartial and comprehensive post-sale inspection option for Ontario and Quebec.”
Pfaff Automotive Partners has added both Town + Country BMW and MINI Markham to its growing group of dealerships, the group announced on Wednesday.
“We're excited today to welcome Town & Country BMW and MINI Markham into our family,” Pfaff Automotive Partners president and chief executive officer Christopher Pfaff said in a news rlease. “We share many of the same values, including a vision for continuous growth and improvement, and a connection to the communities where we live and work.”
The addition of the two stores not only expands Pfaff’s portfolio to include the BMW i and MINI lineups but also gives the group a solid BMW presence throughout the Greater Toronto Area, according to the group.
“Town + Country will provide BMW fans access to two new and pre-owned vehicle inventories, as well as exceptional Pfaff customer service in both the west and east GTA — giving them a new level of convenience and choice. The addition of MINI to our brand offering provides Pfaff customers with another passionate, exciting brand to choose from,” Pfaff said.
Town + Country BMW has a 28-year history with the BMW brand. Founded in 1989, the store moved to its current location in Markham in 2002 and it recently expanded to double the size of its service department.
Additionally, over 200 new associates from Town + Country BMW and MINI Markham have joined the growing Pfaff group.
AutoCanada announced that it is set to purchase all of the issued and outstanding shares of Mercedes-Benz Rive-Sud, which has been open in the greater Montreal region for almost to 50 years.
"We are honored to acquire this dealership from the Leclair family and thrilled to extend our offering in the greater Montreal communities," Steven Landry, president and chief executive officer of AutoCanada, said in a press release. "Mercedes-Benz Rive-Sud is a great facility located in an ideal location. Mercedes-Benz's innovative brand, known for its exciting vehicles, offers us a compelling growth opportunity that will enhance our brand mix."
AutoCanada's aquasition of Mercedes-Benz Rive-Sud’s brings its dealership count to a total of 57.
“The acquisition is consistent with AutoCanada's strategy of adding new brands in metropolitan areas to further expand our dealer network and drive growth potential across major Canadian markets,” the group said.
AutoCanada also announced that it has plans to lease the dealership lands as part of the transaction. The 112,643-square-foot facility along with a 50-car showroom, and 28 service bays.
One service bay holds one of the only three Mercedes-Benz approved collision centers in Quebec.
The dealership retailed 1,270 new and used vehicles last year.
"Mercedes-Benz is pleased to have AutoCanada join our family of retailers," Brian Fulton, president and chief executive officer of Mercedes-Benz Canada said. "The Leclair Group has done a tremendous job of revitalizing our brand in a stunning state-of-the-art facility in Greenfield Park and its surroundings. With a strong and well-seasoned team in place, I am confident that the new owners, AutoCanada and Dealer Principal Anthony Taddeo, will continue to experience sustained success and growth at Mercedes-Benz Rive-Sud."
AutoCanada's transaction is under customary closing conditions and approvals. The deal is expected to close within 30 days.
OpenRoad Auto Group — one of the province’s largest dealership groups with more than 900 associates representing 15 brands at 19 full-service dealerships — is expanding once again. But this time, it’s in the United States.
On Friday, OpenRoad announced the acquisition of an established luxury dealership in Bellevue, Wash., that represents some of the most iconic brands in the world — Bentley, Lamborghini and Rolls-Royce Motor Cars.
“This is an incredible opportunity to grow our luxury lineup and expand our dealership group by entering into a new, world-class market that’s only about a three-hour drive from Vancouver — or less if you’re driving a Lamborghini,” said Christian Chia, president and chief executive officer of OpenRoad Auto Group.
“We look forward to working with general manager Mark Maakestad and getting into the spirit of the Seattle Seahawks with the rest of his team,” Chia continued.
The acquisition of Bentley, Lamborghini and Rolls-Royce Motor Cars Bellevue was completed on Jan. 19 and will be OpenRoad’s first foray into the U.S. market. The addition of the Bellevue dealership follows OpenRoad's corporate strategy to expand existing relationships in key markets.
OpenRoad already owns and operates a Rolls-Royce dealership in Vancouver, while Bentley and Lamborghini are part of the VW Group of companies along with Audi and Porsche — three brands OpenRoad has proven to be successful with in Burnaby and Langley, British Columbia.
As demand for luxury and ultra-luxury brands continues to grow, so will production of exclusive new Bentley, Lamborghini and Rolls-Royce models.
In 2018, Rolls-Royce Motor Cars is slated to launch its flagship, Phantom Sedan and soon after an SUV code-named Cullinan. Lamborghini, the iconic Sant’Agata-based exotic car brand known for their V12 power plants and the iconic Miura sports coupe will continue to produce some of the best super cars in the world. Bentley Motors will mark its centennial anniversary in 2019 along with the company’s celebrated history as the ultimate British luxury automobile icon.
OpenRoad’s newest dealership is located in an urban center just 16 kilometers outside of Seattle in a region that’s home to many of the world’s leading companies, including Microsoft, Boeing, Starbucks, Nordstrom, Paccar, Costco and Amazon.
AutoCanada Inc. announced on Tuesday it has entered into an agreement to purchase all of the issued and outstanding shares of Wellington Motors Limited, which operates a Chrysler Dodge Jeep Ram Fiat dealership in Guelph, Ontario.
The transaction is expected to close within 21 days.
As part of the deal, AutoCanada will purchase the dealership’s land and 40,793-square-foot facility that includes a 12-car showroom and 16 service bays.
In 2015, the dealership retailed 968 new vehicles and 402 used vehicles, with an annual revenue of approximately $61 million.
“We are extremely pleased to welcome Wellington Motors into our Ontario dealer group. The dealership recently owned and operated by Ted and Mike Woods has a long history serving the Guelph community, recently celebrating its 75th anniversary,” said Steven Landry, chief executive officer of AutoCanada.
“We are thrilled to acquire such a flagship store in Ontario. The Woods family has been a staple in the Guelph community and AutoCanada intends to continue that strong tradition,” he continued.
Private equity investment firm Thoma Bravo LLC announced it will acquire TRADER Corp., Canada’s leading digital automotive marketplace and software solutions provider, for $1.575 billion (CAD), from funds advised by Apax Partners. The transaction is expected to close by the fourth quarter.
“We’re extremely impressed by TRADER’s growth into the largest and most trusted digital automotive marketplace in Canada,” Holden Spaht, a managing partner at Thoma Bravo, said in a news release. “We look forward to partnering with Sebastian Baldwin and the entire TRADER team in their commitment to innovation and accelerating the use of TRADER’s current and future software solutions.”
TRADER Corp.'s online properties — autoTRADER.ca, autoHEBDO.net and Autos.ca — attract 13 million visits per month. In addition, the company provides software solutions designed to enable its dealer customers to make smarter and faster business, inventory and marketing decisions.
Sebastian Baldwin, TRADER’s president and chief executive officer, said: “Thoma Bravo’s track record of success in working with and growing software solutions companies makes them the ideal partner for the next phase of TRADER’s growth. We look forward to working closely with them to continue strengthening TRADER’s market leading position.”
“TRADER is well positioned to continue providing high return-on-investment products to its customer base,” said Arvindh Kumar, a principal at Thoma Bravo. “We’re excited to collaborate with TRADER to expand its product portfolio organically and through strategic investments and acquisitions.”
Peter Stefanski, a vice president at Thoma Bravo, added: “We have spent several years evaluating the broader automotive technology sector. Our partnership with TRADER is an excellent opportunity to invest in a mission-critical franchise we believe will benefit from the growth in automotive online media advertising.”
Kirkland & Ellis LLP and McMillan LLP served as legal advisors to Thoma Bravo. Evercore served as M&A advisor.
IHS reported its fourth quarter and full-year 2015 financial results on Tuesday, highlighting revenue of $589 million for Q4, as well as giving more information on its recent purchase of Canada’s CarProof.
IHS, the parent company of Carfax, announced right after Christmas it had purchased CarProof Corp. for $650 million CND.
CarProof is a vehicle history report provider in Canada. IHS acquired U.S.-based VHR company Carfax in July 2013.
Though the companies plan to leverage the combined power of the two VHR companies, an IHS spokesperson confirmed CarProof will continue to operate independently as a subsidiary of IHS, and the Canadian company will continue to operate as it has.
During Tuesday’s call with investors and the media, Jerre Stead — the chairman and chief executive officer of IHS — outlined high hopes for CarProof and what the acquisition means for IHS.
“CarProof is Canada’s top source for used-vehicle data for the automotive industry and provides us the opportunity to extend our market leading vehicle history report footprint into Canada,” said Stead. “We are excited about the multiple growth drivers of the CarProof business, as well as the accelerated product development we expect, like combining the capabilities of Carfax and CarProof."
Subsequent to the closing of its fiscal 2015 year, the company made two acquisitions — the CarProof deal, as well as purchasing Oil Price Information Service (OPIS) on Friday.
Stead explained that these deals are a sign of the company’s changing strategy on capital allocation, refocusing its efforts on larger M&A transactions.
“Both of these acquisitions provide us with high EBITDA margins and strong organic growth,” Stead said.
In fact, Todd Hyatt, chief financial officer and executive vice president of IHS, gave a few numbers that bode well for the company if they come to fruition.
"The CarProof purchase price represents a forward revenue multiple of 6.5 times and forward EBITDA multiple of 16 times,” said Hyatt. “CarProof is a high-growth, high-margin business, and we expect mid-teens growth in 2016 and a margin of 40 percent.”
Hyatt went on to explain the acquisition carries an impressive return profile due to its high growth and synergy opportunities with the Carfax business, as well as its “attractive” Canadian task rate. The CarProof deal also allows the company to utilize its international capital.
“We expect 2016 results to include 11 months of CaProof and nine months of OPIS. The 2016 in-year revenue adjusted EBITDA impact for CaProof and OPIS is approximately $130 million and $55 million, respectively,” Hyatt shared.
IHS management also outlined that the CarProof and OPIS deal are part of an effort to focus on core information and analytic assets.
“We are very pleased with our two accretive acquisitions that we announced, which will extend our coverage of the downstream energy and Canadian vehicle history report markets,” Stead said.
And this move comes amid a North American auto market notching record new-car sales, and used supply is expected to significantly expand in Canada in the next few years — trends that have the IHS team excited for 2016.
“In the used-car part of the business, where we look at Carfax and now very excited about CarProof, as well, that is a business that has great underlying information,” said Stead. “The VHR business has been a good strong business, and that’s an area where we have had new products … I think there is opportunity for a valuation product that I know CarProof is rolling out in Canada. So a lot of new products there can certainly benefit there from the current industry dynamics.”
Hyatt went on to say that from a product perspective, IHS has high hopes for the “two very talented teams” at Carfax and CarProof.
“In the case of CarProof, it has had extraordinary growth over the last decade … When we look at CarProof, the company has driven significant additional VHR volume in the Canadian market,” said Hyatt. “I think the CarProof management team has done a great job of transitioning CarProof from almost a compliance requirement to a value-add for the car dealers in Canada, and we see opportunity to continue to drive growth in the core VHR as well as new products within CarProof.”
IHS, the parent company of Carfax, announced Monday morning it has purchased CarProof Corp. for $650 million CND, which translates to about $460 million USD.
CarProof is a vehicle history report provider in Canada. IHS bought Carfax in July 2013.
Jerre Stead, chairman and chief executive officer of IHS, said: “Like Carfax, CarProof is a high-growth business and gives IHS the opportunity to expand our vehicle history report services into Canada.
“By combining the capabilities of CarProof and Carfax, we also will accelerate product development to better serve the needs of our customers. This acquisition will add a highly accretive revenue-growth and EBITDA-margin business for IHS, and provide significant room for further growth.”
Toronto’s AutoShare will take on a new name Monday: Enterprise CarShare.
AutoShare became part of the Enterprise CarShare network in 2014, and the aforementioned change is one of the final steps in the integration process after Enterprise acquired the company last March. After Monday, the AutoShare website will also automatically reroute veiwers to www.enterprisecarshare.ca.
"This is an exciting new chapter for AutoShare as we fully integrate with Enterprise," said George Kozyrakis, area manager for Enterprise CarShare and previously in the role with AutoShare for more than 15 years. "While the name is changing, the service members receive from our dedicated, local team remains the same and we'll maintain our commitment to the community and leadership as a sustainable transportation provider in the Greater Toronto Area."
Since being purchased by Enterprise, AutoShare membership has grown by 40 percent, and the company said it is currently at an all-time high with more than 18,000 members.
Enterprise CarShare is growing its network at a rapid pace, and is now available at over 200 locations throughout the GTA. The company has also added a new Economy class with lower prices and more kilometers included per rental.
"We are thrilled to officially welcome AutoShare members to the Greater Toronto Enterprise family," said Steve Tudela, vice president and general manager for Enterprise in Toronto. "Since day one, we have worked hard to listen to our members and take steps to enhance their overall car-sharing experience. We are committed to carsharing in Toronto and providing members with an improved fleet, more locations and best in class customer service."
