Australia’s Eagers has entered into a definitive agreement to acquire a 65% stake in CanadaOne Auto.

The proposed deal has an enterprise value of $2.5 billion, said CanadaOne, which will remain headquartered in Edmonton.

Pat Priestner will remain as the CEO of CanadaOne, the operator of 42 franchised vehicle dealerships.

“By combining our deep local knowledge with Eagers’ international retail expertise, resources and relationships, we are building a platform for long-term, strategic growth that will drive innovation for decades to come,” said Priestner.

“For us, and maybe others in the Canadian automotive retail industry, this partnership provides a unique opportunity for Canadian dealerships considering succession and legacy by providing immediate capital depth, enabling accelerated investment in acquisitions, dealership infrastructure and digital retailing.”

As ownership transitions, Pat and Diane Priestner will continue to donated approximately $5 million-per-year charitable giving program through the CanadaOne Cares Dealership Giving program.

Eagers is a global automotive retailer, selling about 170,000 new vehicles and 70,000 used ones, generating revenues of about A$12 billion annually. The company has about 400 dealer agreements and represents approximately 50 vehicle brands.

Photo: CanadaOne Auto