An Indiana-based motor vehicle auction operator says it has signed a definitive agreement to acquire all eight Brasher family auto auctions, including the Sacramento operation.
Carmel, Ind.-based KAR Auction Services announced that its subsidiary, ADESA Inc., will acquire Brasher’s Sacramento Auto Auction at 6233 Blacktop Road in Rio Linda, plus Brasher’s seven other auto auctions in the West in a $283 million cash deal.
ADESA, also based in Carmel, Ind., will acquire Brasher’s auctions in Fresno; San Jose; Reno; Salt Lake City; Boise, Idaho; Portland, Ore.; and Eugene, Ore.
KAR said it expects the acquisition to close in this year’s first quarter, subject to certain regulatory conditions.
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KAR’s announcement said that Brasher’s “key corporate and local auction personnel will maintain leadership roles across the Brasher auctions.”
In 2015, KAR said Brasher’s operations sold approximately 190,000 vehicles, generating revenue of about $140 million.
“For 67 years, Brasher’s has been synonymous with outstanding auto auctions,” John Brasher, who oversees the local auction, said in a statement on behalf of the family. “We take that commitment to our employees and our customers personally and do not approach this sale of our auctions lightly. We fully believe that our auctions will reach even greater levels of excellence as part of ADESA.”
On its website, Brasher’s says the company’s 10 owners in recent months “have been considering how to transition this business to the fourth generation. We were beginning to discuss the possibility of several difficult options, including the possibility of breaking up our family of auctions amongst the different family members. All of these options seemed very difficult and painful.”
During that process, Brasher’s said it was approached by ADESA and concluded the acquisition option “was the best way forward for our family and for the future of the auctions. … Joining ADESA will give us greater resources, more opportunity for employee advancement, and an expanded range of options to offer our customers.”
Brasher’s Sacramento Auto Auction was named 2012 Auto Auction of the Year for the West region by General Motors Financial Co. Inc. The local operation conducts business on more than 100 acres, with enough storage and parking space for 10,000 vehicles.
Along with increasing ADESA’s footprint in three new states, the addition of Brasher’s enhances ADESA’s physical and online buyer bases, Stéphane St-Hilaire, ADESA president and CEO, said in a separate statement.
KAR operates worldwide vehicle auction services and provides related services. The KAR group of companies also includes Insurance Auto Auctions Inc., Automotive Finance Corp. and additional business units, with approximately 14,000 employees and 240 auction facilities.
For more information, see karauctionservices.com.