KAR Shares Surged over 48% in Morning Trading
Tiger Newspress2022-02-25
KAR Shares Surged over 48% in Morning Trading. Carvana to buy KAR Global's U.S. vehicle auction business for over $2 billion.
Online used-car seller Carvana has agreed to buy KAR Global's vehicle auction business in the United States for $2.2 billion to boost its physical presence and maintain growth as a pandemic-induced boom fades.
The deal for ADESA's U.S. unit announced on Thursday gives Carvana access to a business that brought in over $800 million in revenue last year and has 56 physical sites.
Carvana posted strong sales early on in the pandemic as a thin supply of new cars drove up prices of used vehicles, but its growth has slowed in the past few quarters.
It said on Thursday that revenue jumped 105% in the fourth quarter to $3.75 billion, compared with a 125% rise in the previous three months.
"Carvana and ADESA U.S.'s footprints are highly complementary and combining them extends the collective reach of the two businesses," the used-car seller said.
It added that when fully utilized, ADESA's reconditioning operations can add about 2 million units to its annual production.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
