ADESA TO PURCHASE ASSETS OF MONTREAL AUTO AUCTION, LTD.
INDIANAPOLIS, July 21 /PRNewswire/ -- ADESA Corporation (NASDAQ: SOLD) today announced it has reached an agreement in principle to acquire the assets of Montreal Auto Auction for cash and to relocate the auction to a new facility. With this acquisition, ADESA will own ten automobile auctions, doubling the number of ADESA auctions since the time of its April 1992 public offering. The acquisition, which is expected to close in August, is subject to negotiation of a definitive agreement and satisfaction of certain conditions. "We are excited about the contribution and opportunities an operation the caliber of Montreal Auto Auction can bring to ADESA," stated D. Michael Hockett, ADESA's president and chief executive officer. "This acquisition opens up a vast new market for ADESA and complements our ties to Canadian markets via our Buffalo auction." Montreal Auto Auction, located just outside Montreal in Ville St- Pierre, Quebec, is believed to be the second largest auto auction in Canada. The auction offers approximately 1,000 vehicles for sale each week, and has over 6,500 registered dealers. In addition to a strong consignment and fleet/lease base, Montreal Auto Auction has a rental repurchase Ford factory auction. ADESA intends to construct a new auction to meet the needs of Montreal Auto Auction's dealers. It is anticipated that the new auction facility will be fully operational in 1994. "This acquisition demonstrates ADESA's continued association with service-oriented auctions," continued Hockett. "Montreal Auto Auction's employees are knowledgeable, experienced and committed to customer satisfaction; we look forward to having them join our team." ADESA Corporation owns and operates auto auctions, through which used cars and other vehicles are sold to franchised automobile dealers and licensed used car dealers. -0- 7/21/93 /CONTACT: Larry S. Wechter of ADESA Corporation, 317-862-7220/ (SOLD)
CO: ADESA Corporation; Montreal Auto Auction ST: Indiana IN: AUT SU: TNM
BM -- CL017 -- 4177 07/21/93 17:20 EDT
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|Date:||Jul 21, 1993|
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