AutoChoice Parts & Paints Limited and Robert K. Buzzell Limited have announced that they have entered into a definitive share purchase agreement whereby AutoChoice will acquire all of the outstanding shares of the automotive division of Buzzell’s.
Both AutoChoice and R.K. Buzzell are part of the Uni-Select network.
The aquisition will result in one of Atlantic Canada's largest players with a total of 18 branch outlets in all four Atlantic provinces. The move marks AutoChoice’s first foray into the New Brunswick and Prince Edward Island markets.
The stock purchase agreement remains subject to customary closing conditions, including satisfactory completion of due diligence.
The transaction is expected to close on 31 December 2012.
“We are delighted to add Buzzell’s Auto Parts to the AutoChoice family,” said Bahram Mirzaagha, president of AutoChoice. “The Buzzell family has worked tirelessly over the last 92 years to create a jobber platform that, like ours, works with its customers, employees and suppliers to deliver top-tier performance to all of its partners. Now with locations servicing New Brunswick, Newfoundland, Nova Scotia and Prince Edward Island, we look forward to building on the formidable work that both entities have achieved to date and creating a truly Atlantic Canadian champion.”
“We are pleased to enter into this agreement with AutoChoice,” said Robert K. Buzzell, president of Buzzell’s. “We believe that, as an independent jobber like ourselves, AutoChoice will continue building on the success that our family has achieved over the last nine decades. I want to thank all of our employees who, through their hard work and dedication, have helped to create a leading franchise.
"Upon completion of the transaction, I will be supporting AutoChoice’s management team during the integration and I know that I can count on all of our employees to continue to work hard and remain focused as our two jobbers come together. I am pleased to be passing the torch of our automotive division on to a fellow independent Atlantic Canadian jobber and have full confidence that AutoChoice will continue to meet the same standards of excellence that we have prided ourselves upon since inception. Our plan for Robert K. Buzzell Limited is to concentrate our efforts on expanding our small engine division, Atlantic Air Cooled Engines, as well as investigating the possibility of opening a fee warehouse in the Moncton area. I think this is a tremendous opportunity for both companies to grow their respective businesses.”
Robert K. Buzzell, president of Buzzell’s, has agreed to support AutoChoice in a consulting role for a period of 12 months post-closing to assist in the integration process.