– Leader Auto Resources (LAR), Resilience Capital Partners enter partnership to enhance services, significantly grow U.S. business
– U.S business will be rebranded as DealerShop ™ , providing complete sourcing of products, services and equipment to auto dealership franchises
– Streamlined business model conserves time, offers dealerships extensive savings
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="MONTREAL and DETROIT , March 30, 2020 /CNW/ – Leader Auto Resources (LAR), based in Montreal , and Resilience Capital Partners, a Cleveland -based private equity firm, today announced they will partner to significantly expand LAR’s auto dealership sourcing and service business in the U.S. Through the investment by Resilience Capital, LAR’s existing U.S. business will be rebranded as DealerShopTM, and will be led by automotive industry veterans Mary Petrovich , chairman, and Bill Gryzenia , president and CEO.” data-reactid=”15″>MONTREAL and DETROIT , March 30, 2020 /CNW/ — Leader Auto Resources (LAR), based in Montreal , and Resilience Capital Partners, a Cleveland -based private equity firm, today announced they will partner to significantly expand LAR’s auto dealership sourcing and service business in the U.S. Through the investment by Resilience Capital, LAR’s existing U.S. business will be rebranded as DealerShopTM, and will be led by automotive industry veterans Mary Petrovich , chairman, and Bill Gryzenia , president and CEO.
“We founded LAR with the aim to create a centralized supply chain system that provides dealers with increased confidence and control in their purchasing activities,” said Robert Issenman , president and CEO of LAR. “This agreement with Resilience Capital will catapult us in our mission, and provide the capital and expertise to replicate our business model in the United States .”
LAR was founded 40 years ago and is the largest sourcing partner for franchised new vehicle dealerships in North America , serving more than 2,000 dealer franchises and 270 collision centers primarily across Canada . Together, LAR and DealerShop plan to grow by leveraging greater purchasing power, enhancing the customer experience through technology investments and process improvements, and elevating its collision center, parts and services offerings.
Recognizing the cyclical nature of the automotive industry, Resilience Capital sees the potential for dealerships and collisions centers to operate profitably throughout these cycles. Bassem Mansour , co-CEO of Resilience Capital, added, “With our deep understanding and experience in the automotive services and aftermarket segments, this partnership with LAR fits the Resilience Capital portfolio perfectly as a long-term investment aimed at growth and profitability of the company through new and better services to dealer franchises and collision shops.”
DealerShop, which will handle and expand all of the company’s U.S. operations, will be headquartered in the Detroit area and serve as a subscription-based distribution hub for supplying dealerships with everything needed to operate their business — from administrative supplies and services, to warehouse and direct-purchase products from the world’s leading suppliers, to capital equipment. Experts within the company will routinely and objectively analyze an extensive variety of supplies, parts, equipment and more to deliver dealers the best pricing and streamline steps for their respective purchasing departments.
“DealerShop will operate as a centralized supply chain system for essentially everything a dealership needs to effectively run its business,” said Petrovich. “With more than 17,000 dealerships nation-wide, we believe there is an incredible opportunity to help dealers and collision centers minimize administrative tasks, optimize time devoted to other core functions and realize true cost savings in almost every area of their franchise.”
DealerShop intends to utilize LAR’s proven business model, create stronger distribution channels and utilize its expansive network to successfully negotiate rates locally. In addition to forging its own path in the U.S. market, DealerShop will continue to support LAR’s continued growth in Canada .
“We saw an opportunity to take a longstanding success story in the Canadian market, expand that strategy and employ it on a larger scale in the U.S., where there is a growing need for reliable and efficient car and truck dealership suppliers,” said Gryzenia. “We will put an intense focus on becoming a strong partner to help dealers focus on the areas of support and service as a strategy to enhance their overall profitability.”
The vast majority of inventory purchased through DealerShop will be shipped directly from its planned distribution center and headquarters in the Detroit area. In some cases, items will be drop-shipped directly from the manufacturer, but still ordered through DealerShop.
“This is a great day for LAR and the dealerships and collision centers it serves,” said Al MacPhee , chairman of LAR, president of MacPhee Ford of Dartmouth, Nova Scotia , and past chairman of the Canadian Automobile Dealers Association. “This deal will result in a stronger company that is even better equipped to help customers save money, operate more profitably, focus on their core businesses and enable them to serve their customers in better ways.”
Current plans call for DealerShop to put an emphasis on growing the Northeast region and into the Midwest before expanding into other areas of the country.
BellMark Partners LLC acted as exclusive financial advisor to LAR.
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="About Leader Auto Resources” data-reactid=”31″>About Leader Auto Resources
Leader Auto Resources is the largest sourcing partner for franchised new vehicle dealerships in North America , serving over 2,000 dealerships and 270 collision centers across Canada and the Northeast United States . LAR provides dealers with time-tested solutions in virtually every area for dealerships and collision centers. The company offers a broad range of warehouse products and services, including high-volume and private-label products; direct products and services, which provides negotiated rates with the industry’s largest base of certified suppliers; equipment for the buildout or retrofit of new dealerships and collision centers; and training. The company was founded in 1980 with headquarters in Montreal, Canada .
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="DealerShop was formed in March 2020 to replicate LAR's business model and serve the U.S. car and truck dealership market. For more information visit www.dealershopusa.com or www.larnet.com.” data-reactid=”33″>DealerShop was formed in March 2020 to replicate LAR’s business model and serve the U.S. car and truck dealership market. For more information visit www.dealershopusa.com or www.larnet.com.
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="About Resilience Capital Partners” data-reactid=”34″>About Resilience Capital Partners
Headquartered in Cleveland, Ohio , Resilience invests in niche-oriented manufacturing, value added distribution and business service companies with sustainable market positions. Resilience provides a flexible transaction approach to accommodate the needs of businesses and sellers.
Since its founding in 2001, Resilience has invested in 83 companies under 41 platforms. Resilience manages in excess of $550 million for its global investor base which includes pension funds, insurance companies, foundations and endowments, fund of funds and family offices.
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="For more information, please visit www.resiliencecapital.com.” data-reactid=”37″>For more information, please visit www.resiliencecapital.com.
TORONTO – Canada’s main stock index was down more than 200 points in late-morning trading, weighed down by losses in the technology, base metal and energy sectors, while U.S. stock markets also fell.
The S&P/TSX composite index was down 239.24 points at 22,749.04.
In New York, the Dow Jones industrial average was down 312.36 points at 40,443.39. The S&P 500 index was down 80.94 points at 5,422.47, while the Nasdaq composite was down 380.17 points at 16,747.49.
The Canadian dollar traded for 73.80 cents US compared with 74.00 cents US on Thursday.
The October crude oil contract was down US$1.07 at US$68.08 per barrel and the October natural gas contract was up less than a penny at US$2.26 per mmBTU.
The December gold contract was down US$2.10 at US$2,541.00 an ounce and the December copper contract was down four cents at US$4.10 a pound.
This report by The Canadian Press was first published Sept. 6, 2024.
TORONTO – Canada’s main stock index was up more than 150 points in late-morning trading, helped by strength in technology, financial and energy stocks, while U.S. stock markets also pushed higher.
The S&P/TSX composite index was up 171.41 points at 23,298.39.
In New York, the Dow Jones industrial average was up 278.37 points at 41,369.79. The S&P 500 index was up 38.17 points at 5,630.35, while the Nasdaq composite was up 177.15 points at 17,733.18.
The Canadian dollar traded for 74.19 cents US compared with 74.23 cents US on Wednesday.
The October crude oil contract was up US$1.75 at US$76.27 per barrel and the October natural gas contract was up less than a penny at US$2.10 per mmBTU.
The December gold contract was up US$18.70 at US$2,556.50 an ounce and the December copper contract was down less than a penny at US$4.22 a pound.
This report by The Canadian Press was first published Aug. 29, 2024.
The crypto market has recently experienced a significant downturn, mirroring broader risk asset sell-offs. Over the past week, Bitcoin’s price dropped by 24%, reaching $53,000, while Ethereum plummeted nearly a third to $2,340. Major altcoins also suffered, with Cardano down 27.7%, Solana 36.2%, Dogecoin 34.6%, XRP 23.1%, Shiba Inu 30.1%, and BNB 25.7%.
The severe downturn in the crypto market appears to be part of a broader flight to safety, triggered by disappointing economic data. A worse-than-expected unemployment report on Friday marked the beginning of a technical recession, as defined by the Sahm Rule. This rule identifies a recession when the three-month average unemployment rate rises by at least half a percentage point from its lowest point in the past year.
Friday’s figures met this threshold, signaling an abrupt economic downshift. Consequently, investors sought safer assets, leading to declines in major stock indices: the S&P 500 dropped 2%, the Nasdaq 2.5%, and the Dow 1.5%. This trend continued into Monday with further sell-offs overseas.
The crypto market’s rapid decline raises questions about its role as either a speculative asset or a hedge against inflation and recession. Despite hopes that crypto could act as a risk hedge, the recent crash suggests it remains a speculative investment.
Since the downturn, the crypto market has seen its largest three-day sell-off in nearly a year, losing over $500 billion in market value. According to CoinGlass data, this bloodbath wiped out more than $1 billion in leveraged positions within the last 24 hours, including $365 million in Bitcoin and $348 million in Ether.
Khushboo Khullar of Lightning Ventures, speaking to Bloomberg, argued that the crypto sell-off is part of a broader liquidity panic as traders rush to cover margin calls. Khullar views this as a temporary sell-off, presenting a potential buying opportunity.
Josh Gilbert, an eToro market analyst, supports Khullar’s perspective, suggesting that the expected Federal Reserve rate cuts could benefit crypto assets. “Crypto assets have sold off, but many investors will see an opportunity. We see Federal Reserve rate cuts, which are now likely to come sharper than expected, as hugely positive for crypto assets,” Gilbert told Coindesk.
Despite the recent volatility, crypto continues to make strides toward mainstream acceptance. Notably, Morgan Stanley will allow its advisors to offer Bitcoin ETFs starting Wednesday. This follows more than half a year after the introduction of the first Bitcoin ETF. The investment bank will enable over 15,000 of its financial advisors to sell BlackRock’s IBIT and Fidelity’s FBTC. This move is seen as a significant step toward the “mainstreamization” of crypto, given the lengthy regulatory and company processes in major investment banks.
The recent crypto market downturn highlights its volatility and the broader economic concerns affecting all risk assets. While some analysts see the current situation as a temporary sell-off and a buying opportunity, others caution against the speculative nature of crypto. As the market evolves, its role as a mainstream alternative asset continues to grow, marked by increasing institutional acceptance and new investment opportunities.
