AutoCanada received about $3.3 million in cash from the sale.

Deal marks another step in U.S. Wind-down

AutoCanada Inc. Said on April 13, 2026 that it completed the sale of Hyundai of Lincolnwood, a dealership in Lincolnwood, Illinois, as part of its broader plan to exit the U.S. Market. The company classified its U.S. Dealerships as discontinued operations at the end of 2024 and has since been divesting assets.

That sale generated roughly $3.3 million in cash for goodwill and fixed assets, the company said — inventory and net working capital were excluded from the purchase price.

The Lincolnwood store produced about $47.7 million in sales in the 12 months ended Dec. 31, 2025 and recorded a net loss of about $3.4 million in that period, compared with sales of $52.3 million and a net loss of $4.8 million in 2024.

The cash proceeds will be used to pay down AutoCanada's revolving credit facility, the company added.

Money recovered so far and targets ahead

So far, AutoCanada has realized approximately $65.8 million in gross proceeds, net of working capital, from the sale of U.S. Assets.

The company continues to expect total proceeds from selling all its U.S. Dealerships will land at the upper end of its previously disclosed range of $115 million to $130 million.

Thing is, the U.S. Operation has been costly. AutoCanada reported that the U.S. Dealership portfolio generated a net loss from discontinued operations of $103.4 million in 2024, a drag that the company is working to remove from its consolidated results.

AutoCanada trades on the Toronto Stock Exchange under the ticker ACQ.

What the Lincolnwood numbers show

Lincolnwood’s revenue and losses reflect how a single-store performance can still carry heavy weight when a company is trimming a loss-making segment. The dealership’s sales fell from about $52.3 million in 2024 to $47.7 million in the 12 months to the end of 2025, and its net loss narrowed slightly to $3.4 million.

Those figures underline why AutoCanada reclassified its U.S. Business as discontinued operations: the arm has been running in the red and has been a drag on margins and leverage.

Selling assets at the headline price doesn’t tell the whole story. The buyer typically assumes inventory and day-to-day working capital, while the seller recognises proceeds net of those items. AutoCanada’s disclosure made that distinction clear: the $3.3 million covered goodwill and fixed assets only.

Mastheads

Balance-sheet effects and credit facility paydown

AutoCanada said the net proceeds from the Lincolnwood sale will be applied to reduce the outstanding balance on its revolving credit facility.

Cutting down borrowings makes sense for a company reshaping its portfolio, especially after taking big losses abroad. Getting debt down helps free up room on the balance sheet and can lower interest outlays, which in turn can support profitability back in Canada.

But the company has also flagged that the U.S. Sales programme is ongoing. Management previously set a target range for proceeds and says it remains comfortable with the top end of that band, which would mean another round of cash inflows as deals close.

Wider business footprint and what’s left

AutoCanada still operates a substantial network in Canada: 64 dealerships across eight provinces, along with 33 collision centres, according to the company’s disclosure.

That domestic footprint is where the group derives most of its recurring earnings today. The U.S.

Divestitures are aimed at letting management focus on the Canadian operations without the burden of an underperforming U.S. Portfolio.

Hyundai remains a major global brand and the U.S. Side of the business benefits from manufacturer programs that affect dealer service lanes. For example, Hyundai Motor America lists a complimentary maintenance program that covers basic oil and filter changes and tire rotations for many 2020–2025 model-year retail vehicles, with services to be performed at authorised Hyundai dealers. Those manufacturer-level programmes can shape service traffic and customer retention at individual dealerships.

How investors might read the move

Investors usually like it when companies sell off loss-making units if the cash helps reduce debt or grow the main business. AutoCanada has been explicit that proceeds will be used to reduce the revolving credit balance — a clear signal that management wants to shore up the balance sheet.

Still, the sale prices achieved and the pace of further disposals will matter. The company has reported $65.8 million of gross proceeds so far; reaching the upper end of the $115 million–$130 million range would bring a more sizable improvement in liquidity and reduce the drag from discontinued operations on future results.

It’s not always straightforward, though. Buyers and sellers must agree on valuations for goodwill, real estate tied to dealerships, and the often-fluid inventory of new and used vehicles. Each transaction can look different because of those variables — which explains why AutoCanada continues to disclose net-of-working-capital proceeds, rather than headline prices that include inventory.

Next steps and remaining questions

AutoCanada still has U.S. Assets to sell. The company’s disclosures show it expects additional deals to close as it winds down the segment.

We’ll need to keep an eye on how quickly future sales close, how much cash they bring, and how much debt gets paid off.

The company’s public statements to date focus on proceeds and balance-sheet repair; they don’t include management commentary in the press release announcing the Lincolnwood sale. The factual record so far is numerical: sales and losses for Lincolnwood, the cash recovery on the deal excluding inventory, the $65.8 million realised to date, and the target proceeds range for the entire U.S. Disposal programme.

Right now, AutoCanada’s U.S. Strategy looks like a deliberate shrink-to-strength play: sell what’s expensive to hold, bank the cash, and concentrate on the larger Canadian network.

But the final totals will tell the full story. Will proceeds reach the top of the band the company cited? How quickly will the credit facility be pared down? Those are concrete outcomes that will alter AutoCanada’s financial profile.

For now, the Lincolnwood transaction is a measurable step toward completing the company’s U.S. Exit.

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AutoCanada received approximately $3.3 million in cash for goodwill and fixed assets from the Hyundai of Lincolnwood sale, excluding inventory and net working capital.

This article was created with AI assistance.