AutoCanada discontinues C2C F&I and Kijiji-based ICO businesses
Image courtesy of AutoCanada.
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AutoCanada is ending its online consumer-to-consumer finance and insurance business and its Kijiji-based instant cash offer business.
The dealer group said Monday that it has repurchased iA Financial Group’s 10% common equity interest in 15154871 Canada Inc. for $8 million in cash.
With that transaction, the parties have concluded their investment arrangement related to AutoCanada’s Online C2C F&I Business and its Kijiji-based ICO Business.
Those two businesses generated approximately $3.6 million in revenue and incurred $6.0 million in net losses in the trailing 12 months ending June 30.
AutoCanada said it made this decision to focus on core dealership and collision operations.
iA Financial Group will remain an AutoCanada partner, providing insurance and warranty products throughout the retailer’s dealer network.
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“A Financial Group is a great partner to AutoCanada and an important provider of third-party insurance and warranty products across our dealership network,” AutoCanada CEO Samuel Cochrane said in a news release.
“As a company, our priority is clear: to be the best operator of automotive dealerships and collision centres in Canada. This requires disciplined allocation of capital and management attention,” Cochrane said. “We will act decisively when an initiative is loss-making, does not meet our return requirements or distracts from our core operations.”
In other news from the retailer, Robert Steele announced Monday that he has acquired 264,450 common shares of AutoCanada through his company WAGS Investments Limited via facilities of the Toronto Stock Exchange.
The shares were priced at $22.00 per share for aggregate consideration of $5,817,900.00.
Following the acquisition, Steele controls 2,372,144 shares, representing roughly 10.41% of AutoCanada’s outstanding shares.
“These shares were acquired for investment purposes. From time to time, Mr. Steele may increase or decrease his direct or indirect ownership, control or direction over the shares in the normal course of his investment activities,” notes a statement from Steele’s organization.
