KAR Auctions Details Big Acquisition

In a statement Brasher's says "it became clear that this was the best way forward for our family and for the future of the auctions."

ADESA Inc., a subsidiary of Carmel-based KAR Auction Services Inc. (NYSE: KAR), has announced an acquisition agreement for eight auctions in the western U.S. The deal for all of Brasher’s family-owned locations is valued at $283 million.

KAR Auctions says key corporate and local auction staff from Brasher’s will remain in place. The locations are: Salt Lake City, Sacramento, Portland, Boise, San Jose, Eugene, Reno and Fresno. The acquisition expands ADESA’s footprint by three states. Brasher’s key corporate and local auction personnel will maintain leadership roles across the Brasher auctions.

Brasher’s has been around for more than 65 years and bills itself as one of the oldest auto auction companies in the country. It says the deal is the right move for the fourth-generation company, which was reaching a period of transition. In a statement, Brasher’s leaders say plans call for the company to operate under the name through the end of next month, then it will shift to ADESA. The company, which sold approximately 190,000 vehicles last year adds, "there are not massive changes coming."

KAR Chief Executive Officer Jim Hallett says "the Brasher family is one of the most highly respected families in our industry. It is a tremendous honor that they have agreed to become part of ADESA. Brasher’s is a premier auto auction with a strong management team that shares our passion for the auction business and desire to provide the best customer service possible. I am also pleased that the members of the Brasher family and other leaders in their business have agreed to join our management team."

KAR expects the transaction to close in the first quarter. Last year, KAR announced the acquisitions of two online sales companies and a vehicle inspection business.