AutoCanada buys two more Ontario luxury stores

AutoCanada Inc. has added two more dealerships to its Ontario portfolio as the Edmonton-based company continues to expand its geographic footprint and mix of brands.

The dealership group said May 2 it had acquired Porsche of London and Audi Windsor for an undisclosed price.

The pair of dealerships, owned by Southwestern Ontario’s Leavens Automotive Group, generate revenues of more than $80 million annually, AutoCanada said, and are each recently built. The purchase includes the underlying real estate in both London and Windsor, Ont.

AutoCanada Executive Chairman Paul Antony said the acquisition will create new growth opportunities for the company in Ontario and add to its roster of luxury locations.

"Notably, the acquisition expands our relationship with Audi and brings Porsche into our Canadian dealership portfolio,” he said in a release.

The deal increases AutoCanada’s portfolio to 80 franchised dealerships in Canada and the United States.

Chris Leavens, head of the Leavens Automotive Group, meantime, told Automotive News Canada the decision to sell was a mix of the right timing and lingering uncertainty about the future of automotive retail.

“Do I think the next few years are going to be good? Yeah, I do, but after that, uncertainty with electrification, uncertainty with the different franchise models that are being tabled.”

Leavens said he is confident in the long-term outlook of the automotive business, but he also considered the COVID-19 “storm” the group has recently weathered and the impending federal luxury tax when weighing his options.

“All those things added up to some uncertainty in the future of where the business is going, so I thought maybe it was a good time to remove a couple of the more valuable assets.”

Pfaff Automotive Partners, which owned an interest in Porsche of London, was also involved. Leavens said Pfaff exited its stake as part of the agreement, and AutoCanada confirmed it had acquired 100 per cent of both dealerships.

Leavens Automotive Group will continue to operate six dealerships in Southwestern Ontario following the deal.

Leavens said he will also be watching for future growth opportunities.

“I'm only 57. I've got lots of life left in me. I love the business. So, we’ll continue to operate and see where we go.”