Eagers Automotive Enters Canada Via A$1 Billion Investment in CanadaOne Auto
By David Winning
SYDNEY--Eagers Automotive moved to expand into Canada through a strategic investment of 1.04 billion Australian dollars (US$690 million) in CanadaOne Auto, one of the largest car dealerships in the North American country.
Eagers said it would fund the deal for a 65% stake in CanadaOne Auto through a A$452 million entitlement offer that is partially underwritten. New shares would be issued at A$21.00 each, representing a 28% discount to Tuesday's close.
Eagers said it would also issue exchangeable shares worth A$386 million to an entity controlled by CanadaOne Auto founder Pat Priestner, who will continue to own 35% of the Canadian company once the investment completes.
The remaining funding largely comprises a A$50 million share placement to Japan's Mitsubishi Corp., which is also acquiring a 20% interest in Eagers's easyauto123 used-car business for A$70 million.
CanadaOne Auto has 42 dealerships across five Canadian provinces. It sells auto brands including Toyota, Ford and General Motors, and owns the freehold to properties worth some A$714 million.
Eagers said CanadaOne Auto is highly profitable, with an adjusted profit before tax of A$221 million in the 12 months through June. CanadaOne Auto's revenue in that period totalled A$5.5 billion.
"Our objective has been to pursue international growth in the best market with the best partner," said Eagers Chief Executive Keith Thornton, citing CanadaOne's profitable growth and deep industry experience.
Write to David Winning at david.winning@wsj.com
(END) Dow Jones Newswires
September 30, 2025 19:56 ET (23:56 GMT)
Copyright (c) 2025 Dow Jones & Company, Inc.The articles, information, and content displayed on this webpage may include materials prepared and provided by third parties. Such third-party content is offered for informational purposes only and is not endorsed, reviewed, or verified by Morningstar.
Morningstar makes no representations or warranties regarding the accuracy, completeness, timeliness, or reliability of any third-party content displayed on this site. The views and opinions expressed in third-party content are those of the respective authors and do not necessarily reflect the views of Morningstar, its affiliates, or employees.
Morningstar is not responsible for any errors, omissions, or delays in this content, nor for any actions taken in reliance thereon. Users are advised to exercise their own judgment and seek independent financial advice before making any decisions based on such content. The third-party providers of this content are not affiliated with Morningstar, and their inclusion on this site does not imply any form of partnership, agency, or endorsement.
Popular
4 Stocks to Buy Before They Rise Further
2 Undervalued Stocks to Buy Before They Rebound
The 10 Best Companies to Invest in Now
The 10 Best Dividend Stocks
United States