This week, AutoCanada Inc., said that it had been given approval by General Motors of Canada, to purchase a 31 per cent no-voting equity interest in Nicholson Chevrolet, located in Sherwood Park Alta., an Edmonton suburb.
The company says this represents the first time AutoCanada has invested in a GM dealership in this country. Nicholson is a great opportunity because of its high volume (755 new and 307 used vehicles were sold last year) and established presence in the area (the dealership has been in operation for almost 40 years), says the company.
AutoCanada will make its investment through a holding company with CEO Pat Priestner receiving 100 per cent of said holding company’s voting shares in addition to assuming the role of dealer operator at Nicholson Chevrolet. The result also means that the holding company will control 51 per cent of the voting interest at Nicholson, with the existing owner of the store retaining 49 per cent ownership.
“Chevrolet is a very significant brand in the Canadian automotive landscape,” said Priestner. “We are extremely pleased that [GMCL] has agreed to accept AutoCanada as part of the General Motors family. We look forward to our new partnership with the current owners of the dealership, whose family has successfully owned and operated [Nicholson Chevrolet] for almost 40 years.”
Priestner also said that moving forward; AutoCanada will also be seeking additional GM dealer acquisitions.
