AutoCanada Inc. Announces Stock and Cash Deal for Investment in a Group of Two General Motors Dealerships

EDMONTON, March 10, 2014

Based in Saskatoon, Saskatoon Motor Products Ltd. has been serving Saskatchewan for over 60 years with new and used General Motors vehicles.  The dealership 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 Ltd. has also been serving Saskatchewan for over 60 years and offers a full line of Chevrolet, GMC, Buick and Cadillac branded vehicles to Prince Albert and the surrounding region.  The dealership will operate out of a leased facility 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. 

The two dealerships are currently owned and operated by Mr. Roger Mann (a third generation dealer) and his son Mr. Robert Mann (a fourth generation dealer) and are the oldest family run General Motors stores in the country.  The Mann Family have been General Motors dealers for 100 years 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% non-voting equity interest, with Mr. Pat Priestner, Chief Executive Officer of AutoCanada, being named Dealer Operator by holding a 15% personal equity interest and voting control of the dealership.  Mr. Robert Mann will be named Dealer Owner and will retain a 15% equity interest in the two dealerships and will continue to operate the dealerships.  The transaction was reviewed and approved by AutoCanada's independent members of its Board of Directors.  AutoCanada will purchase its 70% 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, and we welcome both Mr. Roger Mann and Mr. Robert Mann to our group and look forward to a long and rewarding relationship."

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