AutoCanada (ACQ) announced Tuesday it has acquired Mark Wilson’s Better Used Cars, an independent used vehicle dealership in Guelph, Ontario. AutoCanada currently operates 66 franchised dealers across eight Canadian provinces, as well as the state of Illinois.
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Along with AutoCanada’s December 2020 purchase of Haldimand Motors, this acquisition expands the company’s used digital retail division. Wilson’s has consistently won the Guelph Preferred Dealer Award over the years. (See AutoCanada stock charts on TipRanks)
AutoCanada’s executive chairman Paul Antony said, “As one of the best used vehicle dealer operators in the country, adding Wilson’s to AutoCanada further improves the Company’s bench strength and talent pool and allows us to assess best in class practices as we continue to build our Used Digital Retail platform.
“This acquisition also aligns with our strategy of geographic diversification as it expands our network of used dealerships and furthers our exposure into the Ontario market.”
On July 28, Canaccord Genuity analyst Luke Hannan maintained a Buy rating on ACQ while raising its price target to C$60 (from C$58). This implies 13.7% upside potential.
Overall, ACQ has a Strong Buy consensus based on three Buys. The average AutoCanada price target of C$56.67 implies 7.3% upside potential. Shares of the company have gained nearly 130% year-to-date.
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