ADESA Las Vegas hosted a ribbon-cutting at its new auction facility October 13 as part of a three-day sales event. ADESA executives and staff joined North Las Vegas Mayor Shari Buck, local dignitaries and customers for the ceremony.
“Thank you to everyone for supporting our official ribbon-cutting at ADESA Las Vegas,” said Tom Caruso, president and CEO of ADESA, which operates 70 auction locations in the U.S., Canada and Mexico. “It was an exciting sale, and the turnout was phenomenal.”
More than double the regular bid badge count attended this sale, including a large number of online bidders, ADESA reports in a Tuesday (Oct. 18) release. Along with a considerable selection of inventory, attendees were also treated to a special charity auction. The winning bid of $8,000 for a 2010 Harley-Davison Sportster was donated to The National Independent Automobile Dealers Association charities.
Caruso, a charter member of the Massachusetts NIADA, had the idea to include a charity component to the ribbon-cutting festivities. “The NIADA Foundation has a wonderful scholarship and education program,” he said. “It is important that we continue to support an association that does so much for our industry.”
This three-day event included a number of open and closed consignor sales, as well as an auction open house and specialty auction.
“My team really pulled together to create an amazing ribbon-cutting event for our customers,” said ADESA Las Vegas General Manager Theo Jelks. “I want to thank them for their dedication and team work, and to thank our customers for their business.”
Positioned on 47 acres, ADESA Las Vegas is just minutes north of the Las Vegas strip. A newly constructed facility, it offers the latest in auction services and technology, including full detailing capabilities, complete reconditioning services, a body shop and a mechanic shop.
The auction will host a weekly sale every Thursday with vehicles from national consignors and local dealers. ADESA Las Vegas is located at 1000 E. Gowan Road, North Las Vegas, Nevada 89090. For more information, call (702) 800-8000.
Carmel, Ind.-based KAR Auction Services Inc. announced today (Aug. 16) that its subsidiary, ADESA Inc., has signed a definitive agreement to acquire the equity of OPENLANE, Inc., a leading Internet-based business-to-business automotive remarketing company.
According to a press release, Peter Kelly will continue as OPENLANE’s CEO and will report directly to KAR’s CEO, Jim Hallett. OPENLANE will be acquired for $210 million in cash, plus an increase for excess cash on OPENLANE’s balance sheet at closing. The transaction’s closing is subject to certain regulatory and other closing conditions. The company expects to finance the transaction with available cash and proceeds from its revolving credit facility.
“I have known Peter and members of his management team for a number of years and have always believed that OPENLANE would be a good cultural fit with KAR. I look forward to Peter and his team contributing to KAR’s success,” said Hallett.
In 2011, KAR expects that OPENLANE will generate approximately $100 million in revenue and sell over 300,000 vehicles to automotive dealers through its online auction services platform. After giving pro forma effect to this acquisition and the elimination of certain corporate costs, KAR expects OPENLANE’s pro forma Adjusted EBITDA in 2011 to be approximately $13 million. KAR anticipates that OPENLANE will contribute $20 to $25 million of Adjusted EBITDA in 2012 which reflects synergies expected to be realized upon the integration of the businesses. In addition, KAR expects OPENLANE’s Adjusted EBITDA to further improve following completion of all integration activities in 2013.
Commenting on the acquisition, Jim Hallett stated, “OPENLANE is a natural fit for the KAR family of companies as it extends our online product offerings, provides a complementary customer base and adds talented members to our management team. Sellers and purchasers of vehicles continue to increase their use of online remarketing platforms, and we believe that enhancing our existing suite of online services and products will further support KAR’s objective of expanding our addressable market to capture transactions that currently take place outside the traditional wholesale auction channel. This combination will allow ADESA to broaden its comprehensive end-to-end solutions for the vehicle remarketing industry and will provide opportunities for our sister companies, Insurance Auto Auctions and AFC.”
ADESA announced Wednesday (Nov. 3) that it has acquired six used vehicle auctions from The Premier Auction Group (PAG). The locations include: Bay Auto Auction in Bay City, Mich.; Dealers Auto Auction of Michigan in Clare, Mich.; East Tennessee Auto Auction in Fall Branch, Tenn.; Montpelier Auto Auction in Montpelier, Ohio; Premier’s Las Vegas Auction in North Las Vegas, Nev.; and Wisconsin Auto Auction in Lomira, Wisc.
This acquisition of PAG’s auctions strategically complements ADESA’s dealer consignment initiative and strengthens the company’s footprint in Michigan, Tennessee, Ohio and Wisconsin, according to a news release. It also provides ADESA with the addition of a specialty sale less than two miles from the construction of the company’s new greenfield auction, ADESA Las Vegas.
“The acquisition of The Premier Auction Group demonstrates our commitment to increasing our dealer consignment business and enhancing the scale of our offerings to our national consignors,” said ADESA President and CEO Tom Caruso. “This acquisition, along with the construction of a new auction in Las Vegas, highlights ADESA’s focus on growing our position in the North American market.”
Over time, these six locations will be integrated into ADESA’s current infrastructure and resources, ultimately offering the full scope of ADESA’s product and service offerings.
To strengthen this transition, Bob Hubregsen, president of The Premier Auction Group, will serve as a vice president for ADESA. “I look forwarding to joining the ADESA team and continuing to offer the highest level of service possible to current and new customers alike,” said Hubregsen.
ADESA, a nationwide auction service for autos and RVs, has announced that it is breaking ground on a major construction project in Las Vegas with a brand-new whole car auction facility. Named ADESA Las Vegas, the site located just 10 miles north of the famous Las Vegas strip will firmly establish ADESA in the nation’s 28th largest metropolitan area.
“The addition of ADESA Las Vegas will allow us to expand our geographic footprint in a major market that ADESA previously did not have a presence,” said ADESA President and CEO Tom Caruso. “This facility will enable us to enhance our offerings to both our national consignors as well as local dealers in this region.”
Along with a prime location, this greenfield auction will also have full detailing capabilities, a complete reconditioning shop, body shop and mechanic shop. All auction lanes will be equipped with digital and audio feeds for online auction capability and Automotive Finance Corporation will be located on site. Other customer amenities will include a full-service cafeteria and dealer lounge equipped with online workstations for easy access to inventory on LiveBlock and DealerBlock.
ADESA is currently scheduled to begin marshalling vehicles for a major consignor at ADESA Las Vegas later this month. The new facility is expected to open for business in Spring 2011.
Meanwhile, ADESA’s parent company, KAR Auction Services Inc., also reported its third quarter financial results for the three months ended Sept. 30. For the third quarter of 2010, the company reported revenue of $445.3 million as compared with third quarter 2009 revenue of $430.1 million, an increase of 4%. Adjusted EBITDA for the third quarter of 2010 was $121.1 million as compared with third quarter 2009 Adjusted EBITDA of $114.0 million, an increase of 6%.
Net income for the third quarter of 2010 was $25.6 million, or 19 cents per share, as compared with net income of $8.6 million, or 8 cents per share, in the third quarter of 2009. Adjusted net income per share for the third quarter of 2010 was 28 cents versus adjusted net income per share of 29 cents for the third quarter of 2009.
For the nine months ended Sept. 30, the company reported revenue of $1.374 billion as compared with revenue of $1.312 billion for the nine months ended Sept. 30, 2009, an increase of 5%. Adjusted EBITDA for the nine months ended Sept. 30, 2010, was $372.2 million as compared with Adjusted EBITDA of $326.2 million for the nine months ended Sept. 30, 2009, an increase of 14%. Net income for the nine months ended Sept. 30, 2010 was $62.3 million, or 46 cents per share, as compared with net income of $17.9 million, or 17 cents per share for the nine months ended Sept. 30, 2009. Adjusted net income per share for the nine months ended Sept. 30, 2010, was 85 cents versus adjusted net income per share of 61 cents for the nine months ended Sept. 30, 2009.
ADESA offers a full range of auction, reconditioning, logistical and other vehicle-related services to meet the remarketing needs of both its institutional and dealer customers. With 70 auction locations in the United States, Canada and Mexico, strategically located near metropolitan areas with a large concentration of used vehicle dealers, the company is well positioned to host physical and Internet auctions. ADESA LiveBlock simulcasts vehicles worldwide. ADESA DealerBlock offers two ways to buy: bid-now sales events or buy-now pricing 24/7. Through its related subsidiaries of AutoVIN and PAR North America, it is also able to provide additional services including inspections, inventory audits and remarketing outsourcing solutions including a network of repossession agents, titling and auction sale representation. Visit www.ADESA.com for details.
KAR Auction Services Inc., a leading provider of auto and RV salvage auction services in North America, today (April 19) announced a 30% increase in online sales volumes for 2009 for ADESA, the company’s wholesale car auction services business, compared to 2008, according to a news release.
Additionally, the holding company’s salvage auction services business, Insurance Auto Auctions (IAA), experienced 9% growth in online sales volumes for 2009 compared to 2008.
Online sales volumes for ADESA in 2009 reached nearly 390,000 vehicles, which represented slightly more than 19% of total vehicles sales for ADESA. Online sales volumes for IAA reached more than 550,000, which represented more than 45%of total vehicle sales for IAA. Total online sales volumes for both companies neared the 1 million mark with more than 950,000 vehicles, making KAR one of the largest online sellers of wholesale used and salvage vehicles worldwide.
“Customers have different buying and selling preferences and KAR is committed to providing them with auction services during every stage of the remarketing process — regardless of where the inventory is located — as well as through every possible channel, online or at our 215 physical whole car and salvage auction locations,” said Benjamin Skuy, executive vice president of international markets and strategic initiatives for KAR.
Dealers are utilizing both the electronic systems and physical sites in record numbers. Recently, the company’s whole car unit received two of Auto Dealer Monthly’s prestigious Dealers’ Choice Awards — top place for purchasing inventory online and second place for brick-and-mortar auctions.
“We have dedicated substantial resources to our platforms — LiveBlock, DealerBlock and i-Bid Live—in order to enhance our online remarketing options,” Skuy said. “In addition, we continue to develop products and services for the entire remarketing industry through our wholly owned subsidiary, LiveBlock Auctions International.”
About KAR Auction Services
KAR Auction Services Inc. is the holding company for ADESA Inc., a leading provider of wholesale used vehicle auctions whose operations span North America with 62 used-vehicle sites, Insurance Auto Auctions, Inc., a leading salvage auto auction company whose operations span North America with 153 sites and Automotive Finance Corporation, a leading provider of floorplan financing to independent and franchised used vehicle dealers with 88 sites across North America.