AutoCanada has finalized the sale of three British Columbia dealerships for gross proceeds of approximately $32.2 million, which included $3.4 million allocated for the real estate assets.
The transaction comprised Island Chevrolet Buick GMC in Duncan, Abbotsford Volkswagen, and Chilliwack Volkswagen. For the year ending March 31, 2026, these locations generated approximately $111 million in revenue and recorded a combined net loss of $1 million. The three facilities operated outside of AutoCanada’s primary regional clusters, a factor the company stated limited its ability to implement shared services and reduce localized operational costs.
“While we are committed to growing our dealership network across Canada, we will not tolerate assets that do not meet our long-term return objectives,” said CEO Samuel Cochrane.
The divestiture aligns with AutoCanada’s current initiatives to improve dealership profitability and reduce leverage. During the first quarter, revenue from continuing operations decreased 4.1% to $1.19 billion, resulting in a net loss of $3.3 million, compared to a net income of $9.7 million during the same period in 2025.
The net proceeds from the sale will be directed toward paying down the company’s revolving credit facility. As of March 31, AutoCanada’s net debt-to-credit-agreement EBITDA ratio was 3.96 times, above its target range of 2.0 to 3.0 times. Additionally, the company is in the process of selling its U.S. dealership portfolio, which operates as Leader Automotive Group in Illinois.
Following the British Columbia transaction, AutoCanada’s network consists of 61 franchised dealerships and three independent used vehicle dealerships in Canada. Its collision division continues to operate 37 collision centres.
