BRAMPTON, Ontario — AADCO Automotive Inc., a supplier of Like, Kind and Quality (LKQ) used auto parts, has signed an agreement to acquire Coreline Auto Parts Ltd. of Milton, Ontario.
Founded in 1977, Coreline Auto Parts is the third largest automotive core and materials broker in Canada doing business from coast to coast. A privately held company with annual revenues of $1.5 million, Coreline will significantly expand the AADCO distribution network across Canada, according to AADCO CEO Charles Hodgkinson.
“The Coreline acquisition completes the second leg of our three leg strategy to increase AADCO’s revenues to $10 million in 2005 and $16 million in 2006 by pursuing high growth/high margin markets,” said Hodgkinson.
Coreline will continue to be run by founder John Bruner, and will move into the AADCO plant in Brampton effecting operational savings. Excluding one-time costs, the impact of the transaction on AADCO earnings per share is nominally accretive in the 2004 fiscal which ends June 30, 2004. The acquisition is expected to close April 1.
Coreline is the second recent acquisition announced by AADCO. In December 2003, AADCO announced the signing of an agreement to acquire Dave’s Part Mart of Ottawa, Ontario, as the first step in achieving Ontario wide distribution for the sale of its LKQ parts. On March 2, 2004 AADCO announced the signing of a letter of intent for a master distribution agreement with United International Business of Canada, which should see AADCO parts being sold in China during the 2005 fiscal which starts July 1.
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