EAGERS Automotive has invested more than $1 billion on its second offshore expansion after buying a majority share in a major Canadian car dealership group, CanadaOne Auto.

The move buys 65 per cent of the group with CanadaOne founder Pat Priestner holding the balance. It will also make Mr Priestner the second biggest shareholder in Eagers (with about 7 per cent) after Nick Politis with about 28 per cent.

CanadaOne founder Pat Priestner

The Canadian deal coincides with Eagers selling 20 per cent of its stake in its used-car arm, EasyAuto123, to Japan-based diverse investment house Mitsubishi Corporation (MC)* for $70 million.The EasyAuto123 deal also includes MC buying a slice of the Eagers-owned Carlins Auctions business. MC has also placed $50 million towards Eagers’ funding of the CanadaOne purchase. 

Eagers said that the MC partnership would “explore collaboration opportunities across new vehicle dealerships, independent used car operations and other mutually beneficial areas.”

It includes a strategy to take the EasyAuto123 business model into overseas markets.

Eagers CEO Keith Thornton told GoAutoNews Premium that MC’s investment in Eagers was strategic and he discounted speculation that it could lead to Eagers accessing used-vehicle stock from Japan for sale in Australian dealerships.

He said there was no “desire for parallel imports” and that this had not “formed any part of our logic for this partnership.” 

Eagers COO Edward Geschke added that: “Our intention is very much to grow our EasyAuto123 brand both domestically and abroad through this partnership, leveraging Mitsubishi Corporation’s experience and support.” 

Eagers’ expansion into Canada, which follows its used-vehicle sales and service activities in Auckland, will be funded by a combination of debt, cash and new placements and capital raisings.

Eagers COO Edward Geschke

The price to be paid for the 65 per cent of CanadaOne Auto is $A1.043 billion. In its report to the Australian Securities Exchange (ASX), Eagers said it would pay for the deal through a $452 million capital raising through a one-for-12 entitlement offer, plus $386 million in shares and a $50 million share placement with MC.

Eagers said that when complete, it would have an equity of 55 per cent indirectly in the CanadaOne operating companies, while Mr Priestner would have a 30 per cent stake. The equity partners in the Canadian company and its other minority shareholders would have the remaining 15 per cent.

Noted for its desire to own its land rather than rent, Eagers will also hold a 65 per cent interest in the CanadaOne freehold property-owning companies alongside entities associated with Mr Priestner.

Eagers’ CEO Keith Thornton said in the ASX report: “Our objective has been to secure international growth in the best market with the best partner.”

“To us, the best partner needed scale through a track record of profitable growth, deep industry experience, extensive industry talent, high quality brand partnerships and a clear, material growth runway ahead of them.

“We believe we have found all these qualities in CanadaOne.”

CanadaOne Auto sells 48,000 new vehicles and has $A5.5 billion in annual revenue. Its annual profit before tax was $A221 million.

A Reuters report quoted market analyst Grady Wulff from Bell Direct saying: “Geographic diversification of earnings for Eagers is a highly strategic move to diversify earnings, shifting reliance away from Australia and into a growing market that is experiencing a rebound in vehicle sales.”

Eagers CEO Keith Thornton

Of the partnership with MC, Mr Wulff told Reuters that it was “yet another strategic move by Eagers following the success of their BYD partnership over the last few years.”

He said that the MC partnership “adds strategic value, potentially evolving into deeper collaboration, such as joint ventures or operational tie-ups, particularly in new mobility sectors.”

In his report to the ASX on the CanadaOne acquisition, Mr Thornton said its founder Pat Priestner was a “legendary entrepreneur” in the Canadian automotive industry. CanadaOne has 42 dealerships in five provinces.

“We are excited to work in partnership to accelerate all aspects of our combined growth strategy within the highly attractive and fragmented Canadian dealer market,” Mr Thornton said.

Mr Priestner said: “Since founding CanadaOne over 20 years ago, I have worked hard with my team and our dealers to make CanadaOne the best place for Canadians to buy their new car.”

“We are proud that CanadaOne dealers report significantly higher new car sales compared to industry averages and while we see plenty of opportunities for growth, we believe we can accelerate them in partnership with Eagers Automotive.

“I am not planning on slowing down and when Eagers approached our business we saw a potential partner that shared our vision, our values and culture and who had a track record that presented a compelling partnership opportunity.

“My significant stake in Eagers Automotive demonstrates the confidence I have in this being a game-changer for CanadaOne and Eagers.”

The deal is expected to settle in the first quarter of 2026, subject to regulatory approvals.

Footnote: The EasyAuto123 deal is with Mitsubishi Corporation not Mitsubishi Motors Corporation (MMC). These days MMC is a separate company that is part of the Nissan-Renault-Mitsubishi alliance.