OPENLANE, Inc. has signed a definitive agreement to acquire Manheim Canada from Cox Automotive, subject to certain customary closing conditions. The proposed acquisition advances OPENLANE’s digital strategy by adding Manheim Canada inventory, buyers, sellers and corresponding data to the OPENLANE Canada digital marketplace launched earlier this year. Valued at $130 million CAD or approximately $95 million USD, the transaction includes the Manheim Montreal facility and auction sales, operations and select staff across Manheim Canada, which intends to exit Canada.
Under the agreement, OPENLANE will assume Manheim Canada’s customer relationships. After the transaction closes, OPENLANE will integrate Manheim Canada into OPENLANE Canada, combining all inventory within the OPENLANE digital marketplace. The company will also consolidate operations at nearby locations, onboarding select staff to ensure a seamless transition for customers and ensuring continued access to related services and offerings including inspections, reconditioning, transport and logistics.
The transaction also includes the purchase of Manheim’s Montreal facility but excludes its other Canadian facilities. In Montreal, OPENLANE intends to transition its operations, people and inventory from its current location to the acquired Montreal facility. In all other locations, substantially all of the customers and business operations will be transitioned to nearby OPENLANE Canada vehicle logistics centres. Upon closing, OPENLANE will commence a process to market and sell its existing Montreal facility and anticipates substantial proceeds that would fund a significant portion of the acquisition. All other OPENLANE vehicle logistics center locations and operations will remain the same.
