On Monday, AutoCanada Inc. announced the purchase of a 70 per cent non-voting equity interest in Saskatoon Motor Products Ltd., a Chevrolet dealership located in Saskatoon, Sask. and Mann-Northway Auto Source Ltd., a Chevrolet GMC Buick Cadillac dealership located in Prince Albert, Sask. The purchase of the two dealerships closed upon obtaining approval from GM Canada.
Saskatoon Motor Products, which has been serving customers for over 60 years will operate out of a leased facility which includes a 10 car showroom, 32 service bays and 10 body shop bays. In 2013, the dealership retailed 1,162 new vehicles and 1,068 used vehicles.
Mann-Northway Auto Source, which offers a full line of Chevrolet, GMC, Buick and Cadillac branded vehicle sales and service to Prince Albert and the surrounding region, will also conduct business from leased premises which includes a 10 car showroom, 16 service bays and 10 body shop bays. In 2013, the dealership retailed 649 new vehicles and 468 used vehicles.
Both dealerships are currently owned and operated by Roger Mann (a third generation dealer) and his son Robert. They are also recognized as being the oldest family run General Motors stores in the country (the Mann Family have been General Motors dealers since their first store was founded by Andrew Mann in 1914).
In accordance with the terms of the ownership structure for GM dealerships approved by GM Canada, AutoCanada shall purchase a 70 per cent non-voting equity interest, with Pat Priestner, CEO, AutoCanada, being named Dealer Operator by holding a 15 per cent personal equity interest and voting control of the dealership. Robert Mann will be named dealer owner and will retain a 15 per cent equity interest in the two dealerships as well as continuing to operate both locations.
The transaction was reviewed and approved by AutoCanada’s independent members of its Board of Directors. AutoCanada will purchase its 70 per cent equity interest in the two dealerships through stock consideration of 205,000 shares and the remainder to be paid in cash. The listing of the shares has received conditional approval from the Toronto Stock Exchange (“TSX”).
Commenting on the transaction, Pat Priestner, Chairman and CEO of AutoCanada stated, “we are very pleased and honoured that the Mann family has agreed to join the AutoCanada family through these two very established, high quality and exceptionally well run General Motors stores, each with storied histories in the Province.
In addition to closing this exceptional group of dealerships, we are likewise excited to be entering the great province of Saskatchewan which we believe is a very good market for auto retail. We welcome both Roger Mann and Robert Mann to our group and look forward to a long and rewarding relationship.”
