EDMONTON, ALTA – AutoCanada Inc. announced Mar. 31 that GM Canada has approved its purchase of an 80 per cent non-voting, equity interest in the assets of McNaught Cadillac Buick GMC located in Winnipeg, Man.
The acquisition was expected to close April 1.
Gord McNaught Sr. founded the dealership nearly four decades ago. His two sons, Gord McNaught Jr. and Mr. Andrew McNaught, run the dealership and will continue to operate the dealership from its current leased facility, which includes a 10-car showroom, 24 service bays and 10 body shop bays.
As part of the purchase agreement terms, AutoCanada will purchase the dealership on or before March 31, 2016.
In 2013, the dealership retailed 593 new vehicles and 520 used vehicles.
Pat Priestner, CEO of AutoCanada, will be named dealer operator, and, together with other senior managers, will purchase a 20 per cent equity interest and hold 100 per cent voting control of the dealership.
AutoCanada said independent members of its board of directors reviewed and approved the transaction.
Priestner said “We are very excited to add a fourth dealership to our Winnipeg platform, a market which has proven to be very good for auto retail. A new brand for us in Winnipeg and an additional dealership allows us to continue to build scale in the city.”