ADESA Announces Agreement to Acquire Independently Owned Salvage Auction in Pennsylvania
Purchase will expand ADESA Impact coverage into the mid-Atlantic region
CARMEL, Ind., Feb. 14 -- ADESA, Inc. , North America's largest publicly traded provider of wholesale vehicle auctions and used vehicle dealer floorplan financing, announced today that it has entered into an agreement to acquire N.E. Penn Salvage Company, an independently owned salvage auction in northeast Pennsylvania. The acquisition of the N.E. Penn Salvage Company will expand the nationwide footprint of ADESA Impact, the company's total loss vehicle auction business.
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"When completed, this acquisition will expand our salvage auction business into the mid-Atlantic region," said ADESA Chairman, President and CEO David Gartzke. "It's a good fit for Impact's expansion strategy in that it allows us to enter as a market leader with the only salvage auction physically located in northeast Pennsylvania, as well as filling in our coverage area between recently acquired salvage auctions located all across Ohio and our existing strong presence in the country's northeast and mid-Atlantic regions."
According to ADESA Impact President Cheryl Munce, "The N.E. Penn Salvage acquisition will allow us to further enhance customer service via the addition of Impact's full line of products and services. This is a great opportunity to join forces with a wonderful management team and an experienced staff. We look forward to working with them and our customers in the area."
The auction is located at 103 Thompson Street in Pittston, PA, just southwest of Scranton. Completion of the transaction, which is anticipated to close at the end of February, is subject to customary closing conditions.
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, including among other statements, statements regarding ADESA's proposed acquisition of N.E. Penn Salvage Company, and the anticipated consequences and benefits of such transaction. Such statements 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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