KAR Auction Services, the parent company of ADESA, 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.
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