Canadian retailers go south for offers
However some sellers corresponding to Steve Chipman, president of Birchwood Automotive Group in Winnipeg, Manitoba, need to keep inside a driveable distance of their Canadian operations.
Birchwood Automotive, with 21 shops in Canada, purchased its first and solely U.S. dealership in 2016. It put a “child toe into the water of the U.S. market” with a small Chevrolet-Buick retailer not far throughout the border in Cavalier, N.D., Chipman mentioned. He mentioned he will get calls about as soon as a month on U.S. dealership acquisition alternatives and is in search of the proper match within the northern Midwest.
Ahmad expects Canadian consumers — each with an present U.S. footprint and newcomers — will stay energetic within the U.S. market in 2022.
“We’re discovering in our enterprise that there is a actual excessive degree of curiosity now from much more organizations in Canada,” Ahmad mentioned. “We anticipate that this yr will even be a yr of loads of Canadian-U.S. transactions.”
Basis Automotive Corp. might be one such participant. It has 20 dealerships: Three in Canada and 17 unfold throughout Colorado, North Dakota and Texas.
Whereas Basis has its headquarters in Calgary, Alberta, the group has a U.S. workplace in Houston, which is the place CEO Kevin Kutschinski and most of its workers work.
Basis bought two Hyundai dealerships in Colorado last year in separate transactions. It had aggressive plans to acquire more U.S. stores earlier than the top of 2021, however these offers had been delayed, Kutschinski mentioned.
“The market had gotten so robust, there was a lot deal exercise, that loads of the OEMs had been unable to get loads of the offers throughout the end line by yr finish,” Kutschinski advised Automotive Information.