KAR Auction Services Inc. upped its credit facility with a “syndicate of lenders” to $550 million, from $250 million, to facilitate the acquisition of Brasher’s Auto Auctions, according to an 8-K filed Thursday with the Securities and Exchange Commission. The news about the Brasher’s acquisition also came in on Thursday.
KAR subsidiary ADESA Inc. bought Brasher’s eight auctions in a $283 million cash transaction, according to a company press release. “The addition of Brasher’s auctions would extend our reach in the western region, including states where we currently do not have physical auction sites,” ADESA’s Chief Executive Stéphane St-Hilaire told AFN.
Brasher’s key corporate and auction personnel will maintain leadership roles, and be integrated into ADESA’s processes and systems, including our brand.”
There will be no “massive changes coming” post-acquisition, Brasher’s said in a statement. “Joining ADESA will give us greater resources, more opportunity for employee advancement, and an expanded range of options to offer our customers.”
Rio Linda, Calif.-based Brasher’s sold 190,000 vehicles in 2015, and has a dealer floorplan financing portfolio of $55 million.
