AutoCanada to acquire 417 Nissan, 417 Infiniti
AutoCanada Inc. announced this week that it has entered into an agreement to acquire the operating assets of 417 Infiniti Nissan Limited. The dealer group also reported it has reached an agreement to increase the size of its revolving credit facility from $200 to $250 million.
First up, the to-be acquired accompany owns and operates two dealerships, 417 Nissan and 417 Infiniti in Ottawa, Ontario.
The transaction is subject to the customary closing conditions and approvals and is expected to close within the next 60 days.
Operations at the two dealerships will be overseen by jean Malouin, AutoCanada’s partner in Hunt Club Nissan and Barrhaven Nissan Open Point. The two dealerships operate out of a shared leased facility consisting of 28,000 square feet of space. It includes a 14-vehicle showroom and 15 services bays.
Last year, the dealerships collectively retailed 727 new vehicles and 180 used vehicles.
AutoCanada plans to relocate 417 Infiniti to a standalone leased facility adjacent to 417 Nissan, which will be renovated in accordance with Infiniti Retail Environment Design Initiative (IREDI) standards. According to the company, the relocation is expected to occur by the end of 2016.
Tom Orysiuk, the president and chief executive officer of AutoCanada, looks forward to the addition of the two franchises to his group’s stable.
"We are very pleased to welcome the 417 Nissan and 417 Infiniti family into our new Ottawa platform and look forward to building upon their successes together with Mr. Malouin and Nissan Canada,” Orysiuk said. “Ottawa is an extremely attractive market and we are fortunate to partner with a dealer principal who has shown exceptional results in the region with Hunt Club Nissan. We would like to acknowledge the efforts of Nissan Canada in making this transaction possible.”
In other news from the dealer group, AutoCanada announced Wednesday it has reached an agreement with its lending syndicate to increase the size of its revolving credit facility from $200 to $250 million.
The company explained advances under the increased credit facility are subject to increased borrowing base security.
“AutoCanada has provided unencumbered real estate assets, which are presently being securitized, and will be sufficient to make the full amount of the credit facility available to AutoCanada. The term of the credit facility remains unchanged,” the dealer group’s management shared.
Orysiuk went on to say, "The increase to our credit facility provides additional financial flexibility to support our vibrant acquisition pipeline and to continue to develop and meet capital expenditure requirements for existing and open-point facilities.
“We are very appreciative of the efforts of our syndicate partners at Royal Bank of Canada, HSBC, and Alberta Treasury Branches in working with us on these amendments, and on our growing partnership with them,” he added.