KAR Auction Services Announces Development
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As a subscriber you can listen to articles at work, in the car, or while you work out. Subscribe NowCarmel-based KAR Auction Services Inc. (NYSE: KAR) has announced the development of ADESA Chicago. The company says the 65-acre whole car auction facility in Hoffman Estates, Illinois will provide the opportunity to serve the Chicago market and expand online offerings.
April 9, 2015
News Release
CARMEL, Ind. – KAR Auction Services (NYSE: KAR), the parent company of ADESA, today announced the development of a whole car auction facility. Named ADESA Chicago, the site will give KAR a strong local presence in the nation's third largest metropolitan area.
“As we have discussed in our recent earnings calls, we have a responsibility to deploy capital in a manner that provides a return to our shareholders. Identifying opportunities for strategic growth has been a priority of KAR,” said Jim Hallett, KAR chairman of the board and chief executive officer. “The investment in an ADESA auction facility in Chicago is just one example of how we can deploy our capital to expand our market share, serve additional customers and enhance our financial performance. We will not only serve the Chicago market with a new physical auction facility, but I see an opportunity to expand the use of our online offerings in Chicago.”
The auction will be located in Hoffman Estates, Illinois, just off of I-90. It is conveniently located between six major interstate systems and near O'Hare International Airport. KAR will initially develop 65 acres for the ADESA auction and has an option to expand the site up to 150 acres.
“We are clearly focused on growing our market share in the wholesale used car auction market and expanding our service offerings. This greenfield development and the recent announcement of the acquisition of Pittsburg Auto Auction demonstrate our commitment to brick and mortar locations. Our investment in TradeRev in the last half of 2014 expands our reach into the dealer-to-dealer activity that occurs outside the wholesale auction process. We continue look for other opportunities to invest in the growth for all of KAR's businesses,” added Hallett.
About KAR Auction Services
KAR Auction Services, Inc. (NYSE: KAR), a FORTUNE® 1000 company, operates used vehicle auction services for North American sellers and buyers worldwide. Based in Carmel, Ind., the KAR group of companies is comprised of ADESA, Inc. (ADESA), Insurance Auto Auctions, Inc. (IAA), Automotive Finance Corporation (AFC), and additional business units, with nearly 12,000 employees across the globe.
ADESA operates 66 wholesale used vehicle auctions and IAA has 168 salvage vehicle auctions. Both companies offer leading online auction platforms to provide greater access for customers. AFC provides inventory financing and comprehensive business services primarily to independent used vehicle dealers from its 111 locations. Together, KAR's complementary businesses provide support, technology and logistics for the used vehicle industry. For more information, visit karauctionservices.com.
Source: KAR Auction Services, Inc.