February 16, 2002
cars4U.com buys two Mazda dealerships
Toronto, Ontario – cars4U.com Ltd. announced it has signed a letter of intent to buy North Toronto Mazda and Durham Mazda for approximately $1.6 million in cash and stock. The move is part of cars4U’s continued strategy to acquire automotive dealerships as a public company consolidator.
“After three quarters of increasing profitability, we are taking the next step in cars4U’s strategy to grow through acquisition and consolidation,” said cars4U’s President and CEO Barry Shafran. “We are continuing the implementation of our strategy of acquiring dealerships and improving their
operations and profitability through our proven expertise and existing infrastructure. Our goal is to grow our dealership and leasing operations to become Canada’s pre-eminent automotive retailer.”
“We’re building on a model we’ve seen proven in the US,” added Shafran.
“Consolidation south of the border has resulted in significant improvements in automotive retailing, including more efficient operations and infrastructure, better capitalized dealerships, an improved customer experience, and strong returns for shareholders. cars4U is the only public company in Canada going down that same road.”
With combined sales of about $32 million, the two dealerships are expected to increase cars4U’s revenues by 35 per cent. The transaction, which must still be approved by Mazda Canada, is expected to close in April 2002.
“We’re extremely excited about adding the Mazda brand to our portfolio,” added Shafran. “Last year was Mazda Canada’s best year in history, and there’s a lot of anticipation and buzz in the industry this year about Mazda’s product line. We believe these acquisitions will generate a strong return on our investment and be accretive to our earnings per share.”
cars4U.com Ltd. offers a full range of new and used automobiles for lease or purchase directly from its new car dealerships, through its Toronto-based leasing and wholesale car companies, or through its eDealer at www.cars4U.com. For more information visit .or