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- E Automotive (EINC) signed a US$5.5 million definitive agreement to acquire Houston Auto Auction Inc.
- Houston Auto Auction works on commercial accounts with a specialization in fleet and repossession vehicle sales
- A cash amount of US$2.5 million will be due on closing, and the remaining amount will be due on the first and second anniversaries of the closing
- The acquisition is expected to close by February 1st
- E Automotive Inc. (EINC) is up 6.16 per cent on the day, trading at $5.00 per share at 9:30 am ET
E Automotive (EINC) and its sub-brand EBlock, have signed a US$5.5 million definitive agreement to acquire Houston Auto Auction Inc.
Houston Auto Auction works on commercial accounts with a specialization in fleet and repossession vehicle sales and has historically generated positive EBITDA on a non-IFRS basis. Last year, the company handled approximately 6,500 vehicles.
Jason McClenahan, President and CEO of E Automotive, commented,
“This acquisition, together with our Louisiana asset, ties together two strategic local markets in the Gulf State region as we continue to build scale and strengthen our footprint in the area.”
A cash amount of US$2.5 million will be due on closing, and the remaining payments will be split equally on the first and second anniversaries of the closing. The acquisition is expected to close by February 1st, subject to customary closing conditions.
Back in November, E Automotive had signed non-binding, finalized term sheets with respect to the acquisition of multiple automotive businesses, the Houston Auto Auction acquisition being one of them. However, E Automotive has stated it will no longer pursue the remaining proposed acquisitions due to market conditions.
E Automotive’s ‘land-meets-tech” strategy includes acquiring profitable physical auction assets in its focused regional markets and integrating them into EBlock’s digital wholesale marketplace platform. The EBlock dealer-to-dealer digital marketplace is designed to expand and enhance the reach of a physical auction.
E Automotive Inc. (EINC) is up 6.16 per cent on the day, trading at $5.00 per share at 9:30 am ET.
