AutoCanada Inc. has signed a deal to buy a Montreal-area Mercedes-Benz dealership.Fred Lum/The Globe and Mail
AutoCanada Inc. has signed a deal to buy a Montreal-area Mercedes-Benz dealership, giving the publicly traded dealership group its first franchise with a key luxury auto brand.
Mercedes-Benz Canada Inc. had previously banned ownership of its dealerships by publicly traded companies and AutoCanada lost out on the bidding for a Mercedes-Benz store in Ontario last year.
The deal to buy Mercedes-Benz Rive-Sud expands AutoCanada's footprint among luxury auto makers, which are among the fastest-growing brands in the Canadian market and are expected to continue to grow.
The purchase of the 50-year-old Montreal area franchise increases AutoCanada's dealership count in Canada to 57 and the number of brands it represents to 20.
Edmonton-based AutoCanada acquires a "compelling growth opportunity that will enhance our brand mix," the dealership company's president Steven Landry said in a statement Tuesday.