CARMEL, Ind., Nov. 2 /PRNewswire-FirstCall/ -- ADESA Impact, a total loss vehicle auction subsidiary of ADESA, Inc. , announced today that it has acquired four independently owned salvage auctions. The acquisition of the "Ohio Connection," a group of Ohio salvage auction companies, expands ADESA Impact's regional coverage and is expected to be mildly accretive to ADESA's 2006 financial performance.
"The acquisition of the Ohio Connection allows us to expand our reach into the country's 7th largest state," said ADESA Chairman, President and Chief Executive Officer David Gartzke. "We are committed to accelerating capital deployment. This is a great fit for ADESA Impact as it allows us to serve all of Ohio's major metropolitan areas and is a big step forward in our salvage expansion strategy."
The Ohio Connection auctions were formerly owned by three entities: the Ohio Valley Salvage Pool; the Cincinnati Auto Storage Pool; and the Ohio Valley Salvage Pool of Columbus. The four Ohio locations are: New Philadelphia (serving Canton and Akron); Loraine (serving Cleveland and Toledo); Amelia (serving Cincinnati and Dayton); and Grove City (serving Columbus). These locations handle approximately 20,000 vehicles per year, which will represent about 10-percent growth of ADESA Impact's salvage business.
"This is an exciting acquisition for us in that it gives ADESA Impact an immediate footprint in Ohio, a state with more than 100,000 total loss vehicles annually," said ADESA Impact President Cheryl Munce. "ADESA Impact brings to the Ohio marketplace existing strong relationships with insurers that will hopefully enhance our growth in the marketplace. We are pleased to be joining forces with the tremendous management and employees of the Ohio Connection. They have an exceptional reputation, especially in the area of customer service."
The terms of the sale were not disclosed.
About ADESA Impact and ADESA, Inc.
ADESA Impact is the 3rd largest salvage remarketing company in North America with 36 auction facilities in the United States and Canada. Headquartered in Carmel, Indiana, ADESA, Inc. is North America's largest publicly traded provider of wholesale vehicle auctions and used vehicle dealer floorplan financing. The company's operations span North America with 53 ADESA used vehicle auction sites, 36 Impact salvage vehicle auctions sites and 84 AFC loan production offices. For further information on ADESA, Inc., visit the company's Web site at http://www.adesainc.com .
Forward-Looking Statements
This press release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements, including statements regarding the impact of this transaction on ADESA's 2006 financial performance and ADESA Impact's growth in Ohio are subject to certain risks, trends, and uncertainties that could cause actual results to differ materially from those projected, expressed or implied by such forward-looking statements. The statements are based on assumptions about important factors including: general business conditions; trends in new and used vehicle sales and incentives, including wholesale and used vehicle pricing; economic conditions, including fuel prices, exchange rate and interest rate fluctuations; competition; market trends; business development activities, including acquisitions; litigation developments; vehicle production; weather; and the other risk factors described in the company's Annual Report on Form 10-K, and other risks described from time to time in the company's filings with the Securities and Exchange Commission. Many of these risk factors are outside of the company's control, and as such, they involve risks that are not currently known to the company that could cause actual results to differ materially from forecasted results. The forward-looking statements in this document are made as of the date hereof and the company does not undertake to update its forward-looking statements
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