AutoCanada adds another Edmonton location to its thriving collision repair business
Image courtesy of AutoCanada.
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AutoCanada’s transformation from a financially struggling operation to a growing company has reached the stage at which it’s a buyer in the M&A market.
And as interim CEO Sam Cochrane said during the dealership group’s third-quarter earnings call in November, the collision repair business is leading the way.
AutoCanada announced it has acquired Modern Autobody, a single-location collision and refinish repair facility that has been operating in Edmonton for more than 50 years.
The collision division, which now includes 33 collision centers and one calibration center, has been the company’s most successful operation, generating a 19% year-over-year rise in revenue in Q3.
During the earnings call, Cochrane called that business, led by president of collision operations Art Crawford, “one of our key pillars of growth” in which “we see a low-risk path to sustained double-digit returns on capital,” adding that in terms of acquisitions, over the next “three to five months, you’re likely to see more deals on the collision side” than in dealerships.
In a news release, AutoCanada said the acquisition expands its collision repair presence in the Edmonton market and strengthens its luxury certification coverage in the region. The company’s holdings in its home base of Edmonton also include two nearby collision centers and five dealerships.
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“Modern Autobody is an excellent strategic fit for AutoCanada,” Cochrane said. “The business aligns closely with our focus on premium and luxury certifications, offers attractive operational synergies and is led by a highly experienced team.”
Modern Autobody holds OEM certifications from Mercedes-Benz, BMW, MINI, Jaguar, Land Rover, Tesla, Porsche, Lexus, Acura, Honda, Bentley, Infiniti, Subaru and Rivian, which AutoCanada said raises its ability to serve luxury and electric vehicle collision repair customers.
It currently operates without direct repair programs, which AutoCanada said presents “an immediate opportunity to establish insurance partnerships, expand volume and capture revenue synergies through AutoCanada’s existing insurer relationships.”
AutoCanada operates 64 franchise dealerships and three used-car stores in eight provinces.
