Wednesday, Feb. 06, 2008, 07:00 PM UPDATED 11:59 AMBy Nick Zulovich
CARMEL, Ind. — ADESA made a major move Thursday as officials announced it has acquired the Pennsylvania Auto Dealers' Exchange in York, Pa. According to officials, the facility is to be renamed ADESA PA and will help solidify the company's presence in the mid-Atlantic region.
PADE was founded in 1957 by Jake Hershey and is one of the nation's oldest and largest independently owned auctions, the company stated. Second-generation owners Jake Hershey Jr. and his cousin Skip Wolfgang continue to operate the company.
According to officials, PADE is an 11-lane, 140--acre facility with an 8,000-square-foot reconditioning facility. The sale has additional room for expansion, officials added.
"We've been fortunate to run a successful family business — servicing customers from 49 states and 33 countries — for the past 51 years. And now as we enter into retirement, it's reassuring to know that this will continue under ADESA's strong management," Hershey and Wolfgang said in a joint statement.
ADESA officials commented that the PADE purchase adds to the company's presence in the New York state markets of Syracuse, Buffalo and Long Island as well as ADESA New Jersey. The PADE addition also helps to fill a void in a heavily populated area of the East Coast that can serve a wide dealer base.
"I have known Jake Hershey Jr., and Skip Wolfgang since the early 1990s when we were all members of the ServNet organization," stated Jim Hallett, ADESA president and chief executive officer. "Aside from being a great auction with a great history, they always impressed me with their integrity and their care for their employees and their customers."
According to officials, this acquisition is the fifth Hallet has made since returning to the ADESA helm last April.
"We feel there is tremendous room to expand our operations in eastern Pennsylvania," added Bob Rauschenberg, ADESA vice president of sales and marketing.
"With ADESA's infrastructure and resources, this sale has phenomenal growth opportunities," Rauschenberg continued. "I am very excited to work with the management of PADE to further develop our services for this high demand area of the country."