Canadian automotive retail giant AutoCanada is solidifying its Ontario presence through a high volume dealership acquisition.
The Edmonton-based company announced it has agreed to purchase the right to the operating assets of Hunt Club Nissan Ltd., which owns and operates a Nissan dealership located in Ottawa, Ont.
As part of the deal, AutoCanada has also acquired the right to a Nissan open point dealership in Ottawa, which will be operated out of a new leased facility in the Southwest part of Ottawa. AutoCanada added the facility will be designed to Nissan image standards, with construction anticipated to be completed in 2016.
Current Hunt Club Nissan owner Jean Malouin will remain as dealer principal, and he will retain an ownership in both dealerships, said AutoCanada.
“The acquisition of Hunt Club Nissan is a very exciting opportunity for the Company, increases our Ontario presence, and allows for the creation of a Greater Ottawa platform — a highly desirable region with one of Canada’s highest per capita average incomes,” said Tom Orysiuk, President and CEO of AutoCanada, in a written release.
Hunt Club operates from a five acre, 27,608 sq.ft. leased facility which includes a 12 car showroom, 13 service bays, four detail bays and one alignment bay. In 2014, the dealership retailed 1,109 new vehicles and 452 used vehicles.
“We are fortunate to partner with the Hunt Club Nissan family to build upon its excellent reputation and operational success, and we want to thank the employees of both Hunt Club and our Manufacturer partner, Nissan Canada, for all of their efforts to make this acquisition possible,” said Orysiuk.
The transaction is subject to normal closing conditions and is expected to close within 30 days.
AutoCanada currently operates 51 franchised dealerships in eight Canadian provinces.