CARMEL,
Ind., May 10, 2022 /PRNewswire/ -- KAR Auction
Services, Inc., d/b/a/ KAR Global (NYSE: KAR), a leading provider
of digital marketplace solutions for used vehicles, successfully
completed its sale of the ADESA U.S. physical auction business to
Carvana. The sale, originally announced in February, includes all
ADESA U.S. physical auction sites, operations and staff at 56 ADESA
U.S. vehicle logistics centers and exclusive use of the ADESA.com
marketplace in the U.S. The completed transaction advances KAR's
digital strategy, enhances the company's financial profile and
better positions the company and its industry-leading digital
marketplaces for accelerated growth.
"We believe the future is digital, and the channel shift towards
digital across our industry is gaining momentum. KAR is now better
positioned than ever to lead this evolution and capture the broad
opportunities ahead," said Peter
Kelly, CEO of KAR Global. "Our new, more simplified business
model allows us to focus our strategy, energy and investments on
developing and deploying the digital solutions our customers want,
need and value the most. We believe expanding our capabilities and
the portfolio of services we provide will generate the greatest
benefits for those customers, increase our market share and,
ultimately, deliver the greatest value to our shareholders."
KAR will continue to operate its OPENLANE platform that supports
more than 40 private label programs representing approximately 80%
of North America's off-lease
inventory. KAR will also continue operating its rapidly growing
digital dealer-to-dealer businesses—BacklotCars and CARWAVE in the
U.S. and TradeRev in Canada. In
addition, the company will retain its ADESA Canada, ADESA U.K. and
ADESA Europe businesses as well as its affiliated inspections,
transportation and other services brands, including leading
floorplan solutions provider AFC.
Additional details on the company's strategy and projections
will be covered in KAR's analyst day update call, which it
anticipates will take place in June. Final dates and time for the
call will be announced publicly and published on the investor
relations section of karglobal.com.
Goldman Sachs & Co. LLC served as financial advisor and
Skadden, Arps, Slate, Meagher & Flom LLP acted as legal advisor
to KAR.
KAR Media
Inquiries:
|
KAR Analyst
Inquiries:
|
Jill Trudeau
|
Mike Eliason
|
(317)
796-0945
|
(317)
249-4559
|
jill.trudeau@karglobal.com
|
mike.eliason@karglobal.com
|
About KAR
KAR Auction Services, Inc. d/b/a KAR Global
(NYSE: KAR), provides sellers and buyers across the global
wholesale used vehicle industry with innovative, technology-driven
remarketing solutions. KAR Global's unique end-to-end platform
supports whole car, financing, logistics and other ancillary and
related services. Our integrated physical, online and mobile
marketplaces reduce risk, improve transparency and streamline
transactions for customers in about 75 countries. Headquartered in
Carmel, Indiana, KAR Global has
employees across the United
States, Canada,
Mexico, Uruguay, Europe and the
Philippines. For more information and the latest KAR Global
news, go to www.karglobal.com and follow us on Twitter
@KARspeaks.
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SOURCE KAR Global