In a news release, Openlane said the proposed deal will include Manheim Canada's Montreal auction facility and auction sales, operations and select staff across Manheim Canada. The acquisition is subject to certain customary closing conditions, Openlane said.
Cox Automotive said as part of the transaction, it will discontinue all Canadian wholesale auction operations at Manheim's locations in Toronto; Halifax, Nova Scotia; Moncton, New Brunswick; Edmonton, Alberta; and Vancouver, British Columbia, on or before the deal's closure. Those locations are not part of the transaction, it said in a statement.
"Given our many years operating in the Canadian market and the exemplary work of our Canadian team members, this was not an easy decision and was not based on performance," Cox Automotive Inventory Solutions President Grace Huang said in a statement.
The transaction was not something Cox Automotive had been planning, but it received an unsolicited offer, Huang said. After a review of Manheim Canada, Cox Automotive "decided the time was right to shift our investment priorities to align more closely with Cox Automotive's long-term strategic plans," she said.