The oldest family run General Motors dealerships in Canada have been sold to AutoCanada Inc., the largest publicly traded dealership group in the country.
AutoCanada has purchased Saskatoon Motor Products Ltd., and Mann-Northway Auto Source Ltd., two Saskatchewan dealerships, from the Mann family, who have been dealers selling General Motors of Canada Ltd., vehicles since 1914.
AutoCanada will purchase a 70 per cent non-voting equity interest in the two stores. Pat Priestner, chief executive officer of AutoCanada and its largest shareholder, will own a 15 per cent interest in the dealerships and hold voting control. Robert Mann will be named dealer owner and will keep a 15 per cent equity stake and continue to operate the dealerships.
The ownership structure is created in this fashion because GM Canada does not permit full ownership of its stores by publicly traded companies.
The Mann family will receive 205,000 shares in AutoCanada and cash. The purchase price of the deal was not disclosed.
Saskatoon Motor Products is a Chevrolet dealership. Mann-Northway sells Chevrolet, Buick, Cadillac and GMC vehicles.