Transaction to drive digital strategy and growth through expanded inventory, data and customer base
- The acquisition will benefit Canadian buyers and sellers through leading OPENLANE technology and improved vehicle availability and visibility beyond local auctions.
- Commercial and dealer-to-dealer transactions are hosted on OPENLANE Canada’s leading digital marketplace and supported by OPENLANE’s existing nationwide network of vehicle logistics centers.
- Includes auction sales and operations in Manheim and the Manheim facility in Montreal; all other Manheim Canada facilities excluded.
- Cash flow payback is expected to accelerate through unlocking asset sales, cost and operating synergies.
CARMEL, Ind., December 4, 2023 /PRNewswire/ — OPENLANE, Inc. (NYSE: KAR), a leading operator of digital marketplaces for the wholesale distribution of used vehicles, has signed a definitive agreement to acquire the Manheim Canada business (“Manheim Canada”) from Cox Automotive, subject to certain conditions usual closing conditions. The proposed acquisition advances OPENLANE’s digital strategy by adding Manheim Canada’s inventory, buyers, sellers and related data to OPENLANE Canada’s digital marketplace, which launched earlier this year. Appreciated by 130 million dollars CAD or thereabouts $95 millionThe transaction includes the Manheim Montreal facility as well as auction sales, operations and select employees throughout Manheim Canada, which is seeking to exit Canada.
“OPENLANE’s vision is to build the world’s largest digital marketplaces for used vehicles – and this acquisition helps advance our digital strategy,” said Peter Kelly, CEO of OPENLANE. “Building on the momentum of our shared, single digital marketplace OPENLANE Canada in June, this transaction will help accelerate commerce and merchant growth and deliver an enhanced customer experience. For buyers, more inventory means more choice and an easier way to find the best vehicles for their lots. For sellers, instant access to OPENLANE’s broad buyer base means achieving the best possible market results on every sale. And by deepening our data set, we can generate improved vehicle recommendations, pricing information and other insights to help customers make more informed wholesale decisions.
As part of the agreement, OPENLANE will take over Manheim Canada’s customer relationships. Upon completion of the transaction, OPENLANE will integrate the Manheim Canada business into the existing OPENLANE Canada business and consolidate all inventory into OPENLANE’s digital marketplace. The company will also consolidate operations at nearby locations and hire select employees to ensure a seamless transition for customers and ensure continued access to related services and offerings, including inspections, overhaul, transportation and logistics.
“OPENLANE Canada is committed to achieving our goal of simplifying wholesale so our customers can be more successful,” said Trevor Henderson, Chief Operating Officer of OPENLANE Canada. “We are excited to introduce our unique combination of innovative technology and personalized, local support to these valuable customers. From AI-powered inspections to flexible sales formats to fast, reliable payment, title and detailing services, we are committed to removing the hassle of wholesalers. The entire OPENLANE team looks forward to welcoming our new commercial and retail customers and helping them benefit from all OPENLANE has to offer.”
The transaction also includes the purchase of Manheim’s Montreal facility, but excludes the other Canadian facilities. In MontrealOPENLANE intends to relocate its operations, employees and inventory from its current location to the acquired one Montreal Furnishings. At all other locations, substantially all customers and business operations will be relocated to OPENLANE Canada’s nearby vehicle logistics centers. Upon closing, OPENLANE will begin a process to market and sell its existing businesses Montreal facility and expects significant proceeds that would finance a significant portion of the takeover. All other OPENLANE vehicle logistics center locations and operations will remain unchanged.
telephone conference
A conference call and webcast is planned for investors and analysts to discuss how the proposed acquisition advances OPENLANE’s digital strategy Monday, December 4, 2023at 5:00 p.m. ET. The call will be webcast live on the investor relations page of ir.corporate.openlane.com and will be available for replay following the call. To access the call by telephone, please dial 833.634.2155 and request to join OPENLANE, Inc. at least 10 minutes prior to the call.
About OPENLANE
OPENLANE, Inc. (NYSE: KAR) provides innovative, technology-driven remarketing solutions to sellers and buyers throughout the wholesale used vehicle industry worldwide. OPENLANE’s unique end-to-end platform supports the entire vehicle, financing, logistics and other ancillary and related services. Our integrated marketplaces reduce risk, improve transparency and streamline transactions for customers around the world. Headquarters in Carmel, IndianaOPENLANE has employees everywhere The United States, Canada, Europe, Uruguay And the Philippines. For more information and the latest OPENLANE news, visit corporate.openlane.com.
Forward-Looking Statement
Certain statements contained in this press release contain “forward-looking statements,” as that term is defined in the Private Securities Litigation Reform Act of 1995. In particular, statements that are not historical facts may be forward-looking statements. Words like “should,” “may,” “will,” “would,” “anticipate,” “expect,” “project,” “intend,” “plan,” “believe,” “seek,” “estimate,” “anticipate,” “may,” “continue” and similar expressions identify forward-looking statements. Such statements are based on management’s current assumptions, expectations and/or beliefs, are not guarantees of future performance and are subject to significant risks, uncertainties and changes that could cause actual results to differ materially from those expressed in such projections or implied results differ -looking statements. Factors that could cause or contribute to such differences include, but are not limited to, those discussed in the “Risk Factors” section of our annual and quarterly reports filed with the Securities and Exchange Commission. Many of these risk factors are beyond our control and therefore involve risks that are not currently known and could cause actual results to differ materially from those discussed or implied herein. The forward-looking statements in this press release are made as of the date hereof and we undertake no obligation to update any forward-looking statements.
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