AutoCanada Adds 4th Winnipeg Dealership to Lineup
General Motors of Canada has given AutoCanada Inc. the green light on a new dealership investement, marking the company’s fourth dealership in Winnipeg.
AutoCanada Inc. is expanding their dealership count with the acquisition of a Cadillac Buick GMC dealership, which in 2013, retailed 593 new vehicles and 520 used vehicles.
The company announced it has taken on McNaught Cadillac Buick GMC, located in Winnipeg, Manitoba.
The acquisition was expected to close April 1.
Commenting on the transaction, Pat Priestner, chairman and chief executive officer of AutoCanada stated, "We are very excited to add a fourth dealership to our Winnipeg platform, a market which has proven to be very good for auto retail. A new brand for us in Winnipeg and an additional dealership allows us to continue to build scale in the city.
“We would like to thank General Motors of Canada for its continued support of our efforts to expand our offerings of these highly desirable brands which we believe will continue to grow in market share. We would also like to welcome the McNaught family, and all of the McNaught dealership employees, to the AutoCanada family, with whom we look forward to building a strong and lasting relationship,” he continued.
McNaught Cadillac Buick GMC was founded by Gord McNaught Sr. almost 40 years ago and is currently operated by his two sons, Gord McNaught Jr. and Andrew McNaught.
The two will continue to operate the dealership from its current leased facility which includes a 10 car showroom, 24 service bays and 10 body shop bays.
AutoCanada also broke down the specifics of the purchase agreement.
As part of the purchase agreement terms, the dealership group will purchase the dealership facility on or before March 31, 2016.
In accordance with the terms of the previously announced ownership structure for GM dealerships approved by GM Canada, AutoCanada will purchase an 80 percent non-voting equity interest. Priestner will be named dealer operator, and, together with other senior managers, will purchase a 20-percent equity interest, with Priestner holding 100-percent voting control of the dealership, the company explained.
This acquisition comes shortly after the company announced it was awarded the right to a Volkswagen open-point dealership in Sherwood Park, Alberta, in late February.
For more on the future VW store, see the Auto Remarketing Canada story here.