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Edmonton-based automotive dealership owner and operator AutoCanada Inc. has agreements to sell 13 of its 17 U.S.-based properties after classifying its holdings in the U.S. as a discontinued operation in its 2024 year-end financial report.
AutoCanada did not disclose the buyers, but said it expects aggregate proceeds of $82.7 million (all figures in Canadian dollars) for the franchised dealerships, which operate under a range of brands. That figure includes $6.4 million for the real estate portion of the assets.
All of AutoCanada’s U.S. dealerships, which operate under its Leader Automotive Group division, are located in Illinois.
The dealerships being sold are:
- Autohaus of Peoria (consisting of Audi, Mercedes-Benz, Porsche and Volkswagen dealerships);
- Bloomington Automall (consisting of Audi, Lincoln, Mercedes-Benz, Subaru and Volkswagen dealerships);
- Chevrolet of Palatine;
- Crystal Lake Chrysler Dodge Jeep Ram;
- Hyundai of Palatine;
- and, North City Honda.
The move is part of a larger initiative by AutoCanada to optimize its operations and reduce leverage.
"To better align its portfolio with its core focus on Canadian dealership and collision operations, the Company initiated a comprehensive review of all non-core and unprofitable assets in the third quarter of 2024," the Q4 2024 Management Discussion and Analysis document states.
AutoCanada's moves to optimize operations
This has led to AutoCanada exiting from its RightRide business and the sale of three non-core Stellantis dealerships.
“Additionally, as of December 31, 2024, the U.S. business, having incurred a $24.2 million loss in Adjusted EBITDA during 2024, was reclassified as a Discontinued Operation, reflecting the Company's ongoing efforts to secure a buyer for these assets,” the MD&A states.
The most recent transactions remain subject to customary closing conditions and are anticipated to close in the second half of 2025.
AutoCanada is continuing efforts to divest its remaining four U.S. dealerships, consisting of Hyundai of Lincolnwood, Kia of Lincolnwood, Toyota of Lincoln Park and Toyota of Lincolnwood.
The company operated 64 franchised dealerships across Canada as of the end of Q4 2024. They operate under 25 different brands in eight provinces.
In addition, AutoCanada's Canadian operations segment operates four digital used vehicle dealerships and 12 stand-alone collision centres within its group of 29 collision centres.
The firm’s Canadian dealerships sold approximately 85,000 vehicles in 2024, with 12,900 sales through its U.S. operations.
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