Business
AutoCanada Inc. Announces the Acquisition of Don Folk Chevrolet
EDMONTON , Aug. 24, 2015 /CNW/ - AutoCanada Inc. ("AutoCanada")  (TSX: ACQ) ann...
About this update from Autocanada Inc.
[{"type":"text","content":"\n\nEDMONTON, Aug. 24, 2015 /CNW/ - AutoCanada Inc. (\"AutoCanada\")  (TSX: ACQ) announced today that it has obtained approval from General Motors of Canada (\"GM Canada\") to purchase an 80% non-voting equity interest in the assets of Don Folk Chevrolet, a dealership located in Kelowna, British Columbia. The acquisition is subject to customary closing conditions and is expected to close within 30 days.  \n\nDon Folk Chevrolet was founded over sixty years ago and after joining the dealership in 1971, Mr. Don Folk has led the growth of the dealership from 22 employees to over 70 full time employees. The dealership operates from a facility which includes a 15 car showroom, 14 service bays and 6 detail bays. In 2014, the dealership retailed 452 new vehicles and 304 used vehicles. The acquisition also includes all of the assets of Don Folk Autobody, a standalone autobody shop which is located next to the dealership.\n\nIn accordance with the terms of the previously announced ownership structure for GM dealerships approved by GM Canada, AutoCanada will purchase an 80% non-voting equity interest in the acquired assets. Mr. Pat Priestner, Executive Chair of AutoCanada, shall be named Dealer Operator, and, together with other senior managers, shall purchase a 20% equity interest, with Mr. Priestner holding 100% voting control of the dealership. The transaction was reviewed and approved by AutoCanada's independent members of its Board of Directors.\n\n\"We are delighted to welcome the Don Folk Chevrolet team to the AutoCanada family.  We look forward to building on the tradition of great service under the leadership of Mr. Folk, and ensuring that Don Folk Chevrolet continues with a strong presence in Kelowna.  We would also like to thank General Motors of Canada for their continued support\" stated Mr. Priestner.\n\nAbout AutoCanada\n\nAutoCanada is one of Canada's largest multi-location automobile dealership groups, currently operating 49 dealerships, comprised of 57 franchises, in 8 provinces and has over 3,500 employees. AutoCanada currently sells Chrysler, Dodge, Jeep, Ram, FIAT, Chevrolet, GMC, Buick, Cadillac, Infiniti, Nissan, Hyundai, Subaru, Mitsubishi, Audi, Volkswagen, Kia, BMW and MINI branded vehicles. In 2014, our dealerships sold approximately 57,000 vehicles and processed approximately 786,000 ser...