Attention Business/Financial Editors:
AADCO Announces $20 Million Acquisition Financing Engagement
AA: TSX - Venture Exchange
TORONTO, Aug. 11 /CNW/ - AADCO Automotive Inc. (the "Company") (TSXV:AA) the parent company of AADCO Vehicle Disposal Services Inc, a leading supplier of quality (LKQ) used auto parts, announces that it has engaged Harris Brown and Partners of Toronto, to raise up to $20 million of acquisition financing to further the Company's corporate strategy to become a national provider of LKQ (used) and Aftermarket parts serving the automotive repair industry. The strategy entails a number of acquisitions upon which to build organically and generate synergies for enhanced profitability and market share. Discussions with acquisition candidates are currently underway.
"This financing facility is the first step in the company's plan to start consolidating this industry in Canada," said Mr. Charles Hodgkinson, President and CEO of AADCO Automotive Inc. "We have seen the process successfully underway in the United States over the past number of years and believe that AADCO, as the only public company in this space in Canada, is very well positioned to become the industry leader."
Mr. David Holden, Senior Vice President of Harris Brown and Partners Ltd. of Toronto, added that his "company has identified this industry as a primary opportunity for the consolidating process. We believe that AADCO is now positioned to capture this opportunity."
About AADCO Automotive Inc. -- AADCO Automotive Inc. is a rapidly growing, Canadian public company committed to providing quality LKQ (used) and Aftermarket parts to the automotive repair industry. It has the largest unbolted inventory of recycled OEM parts in Canada, as well as rebuilt engines, aftermarket collision and mechanical parts. It is also Canada's only auto recycler endorsed by Environment Canada's 'Eco Logo.'
About Harris Brown & Partners Limited -- Harris Brown specializes in private equity financing for strategic acquisitions and industry consolidation strategies, not only in the automotive field, but in a wide range of industry sectors in which smaller public companies have changed the face of their market.
The TSX - Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
This press release includes forward-looking statements, including statements relating to the Company's marketing strategy, future sales growth, profitability, competitive position, and release of new products. The words "plan", "expect", "believe", "intend", "anticipate", "forecast", "target", "estimate" and similar expressions identify forward-looking statements. Forward-looking statements are based on assumptions made by and information currently available to the Company. Investors are cautioned that these forward-looking statements are neither promises nor guarantees, and are subject to risks and uncertainties that may cause future results to differ materially from those expected. The Company does not undertake to review or update these forward-looking statements.
For further information: AADCO Automotive Inc., (905) 789-9313, Charles Hodgkinson, CEO, chodgkinson@aadco.ca
