AutoCanada Completes Sale of Kia of Lincolnwood

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AutoCanada Inc., a Canadian automobile dealership group, has announced the completion of the sale of its Kia of Lincolnwood dealership in Illinois. The sale is part of the company's previously announced plan to exit its U.S. operations and strengthen its balance sheet. AutoCanada received approximately $13.4 million in cash from the sale, which will be used to reduce the outstanding balance of the company's revolving credit facility.

Why it matters

The sale of Kia of Lincolnwood represents continued progress in AutoCanada's strategy to exit its U.S. operations and focus on its Canadian business. The company has generated total gross proceeds of approximately $62.4 million from U.S. asset sales so far, with the goal of reaching the high end of its previously communicated range of $115 million to $130 million.

The details

In the 12 months ended December 31, 2025, Kia of Lincolnwood generated sales of approximately $53 million and incurred a net loss of $1.6 million. AutoCanada received $7.1 million for the dealership's goodwill and fixed assets, excluding inventory and net working capital, and an additional $6.3 million for the real estate. The company has also received consent from its lending syndicate to amend its credit facility, increasing the maximum permitted Total Funded Debt to Bank EBITDA ratio from 4.0x to 4.5x through June 30, 2026.

• In the 12-months ended December 31, 2025, Kia of Lincolnwood generated sales of approximately $53.0 million (2024 - $58.0 million) and incurred a net loss of $1.6 million (2024 – net loss of $2.0 million).
• AutoCanada received approximately $13.4 million in cash on the sale, comprised of $7.1 million for goodwill and fixed assets, excluding inventory and net working capital, and $6.3 million for real estate.