OPENLANE To Acquire Manheim Canada Valued At ~$95M; Transaction Includes The Manheim Montreal Facility And Auction Sales, Operations And Select Staff Across Manheim Canada, Which Intends To Exit Canada
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OPENLANE, Inc. (NYSE:KAR) has signed an agreement to acquire Manheim Canada from Cox Automotive for approximately $95 million USD. The acquisition includes the Manheim Montreal facility, auction sales, operations, and select staff, as Manheim Canada plans to exit the Canadian market. This move is set to enhance OPENLANE's digital strategy by expanding inventory, data, and customer base, and is expected to deliver accelerated cash flow through asset sale, cost, and operational synergies. The integration will consolidate operations and transition customers and business to OPENLANE's digital marketplace and vehicle logistics centers, excluding other Manheim Canada facilities. OPENLANE will also market and sell its existing Montreal facility to fund a significant portion of the acquisition.
December 04, 2023 | 9:13 pm
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POSITIVE IMPACT
OPENLANE's acquisition of Manheim Canada is expected to strengthen its digital marketplace, expand its inventory and customer base, and provide operational synergies. The deal is valued at approximately $95 million USD and includes key assets and staff from Manheim Canada.
The acquisition is directly related to OPENLANE's core business and is likely to have a positive impact on its stock price in the short term due to the expected expansion of its digital marketplace and the potential for cost and operational synergies. The anticipated sale of OPENLANE's existing Montreal facility to fund a significant portion of the acquisition could also be viewed positively by investors.
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