Copart Acquires Detroit Facility
31 July 1998
Copart Acquires Detroit Facility, Names Eugene Scambray to Key Industry Relations Post
BENICIA, Calif.--July 31, 1998--Copart, Inc., today announced the acquisition of Auto Salvage Pools, Inc. of Detroit, Michigan, expanding Copart's national network of vehicle auction and storage locations to 60 sites in 31 states.
The new Copart facility includes 43 acres of property and facilities for storage, preparation and sale of salvage and other auction vehicles. Terms of the transaction were not disclosed.
The company also announced that Eugene Scambray, 58, has been appointed to the new position of Director of Industry Relations. Previously, Scambray was Manager of Physical Damage Claims Services at the California State Automobile Association (CSAA).
"Gene's 35 years of experience and extensive industry knowledge will help us further meet the needs of our customers and at the same time enable them to gain the most benefit from their vehicle disposal activities. We believe Gene's expertise in the industry will also help us develop new cost-effective services for our customers," said Copart Chief Executive Officer Willis J. Johnson.
Copart, during the fiscal year ending July 31, 1998, acquired six salvage vehicle auction facilities and opened three new facilities. Acquisitions include facilities in Avon, Minn.; Columbia, S.C.; Mobile, Ala.; San Diego, Calif.; Des Moines, Iowa and Detroit. New salvage vehicle auction sites have been opened in Orlando, Fla.; Raleigh, N.C.; and Las Vegas, Nev.
In addition, Copart has expanded its operations at six existing facilities with the acquisition of over 30 acres of adjacent land.
"Each new location fits our growth strategy by broadening our national presence," Johnson said. "Overall this year, we've added over 250 acres from acquisition, startup and expansion. We've increased our capacity by 19% and end our fiscal year today with approximately 1,400 acres of storage capacity."
"In addition, we are continuing to invest in new technologies and service programs to solidify our leadership position among buyers and sellers in the vehicle auction industry."
On June 5, Copart introduced Internet bidding for vehicles at any of its nationwide auctions, a first for the industry. Available through Copart's website (www.copart.com), the innovative service exposes buyers to a greater number of vehicles across the country.
Founded in 1982, Copart provides vehicle suppliers -- primarily insurance companies -- with a full menu of services to process and sell salvage vehicles through auctions, principally to licensed dismantlers, rebuilders and used vehicle dealers.
Salvage vehicles are either damaged vehicles deemed a total loss for insurance or business purposes, or recovered stolen vehicles for which an insurance settlement with the vehicle's owner has been made. Operating 60 facilities in 31 states, Copart also provides services to other locations through its national network of independent salvage vehicle suppliers.
Certain statements in this release are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Actual results could differ materially from those projected in the forward-looking statements as a result of risk factors and/or factors affecting future results detailed in the company's Securities and Exchange Commission reports, including variations in the company's operating results, the inability to continue to increase service fees, slowdowns in the timing or reduced size of future acquisitions and facility openings, the loss of vehicle suppliers or buyers, the announcement of new vehicle supply agreements by the company or its competitors, changes in regulations governing the company's operations or its vehicle suppliers, environmental problems or litigation.