BLOOMFIELD HILLS, Mich.,
Dec. 1, 2016 /PRNewswire/
-- Penske Automotive Group (NYSE:PAG), an international
transportation services provider, announced today that it has
signed an agreement to acquire CarSense, a stand-alone specialty
retailer of used vehicles in the United States. The
acquisition is expected to generate estimated annual revenue of
approximately $350 million with
accretion estimated to be $0.07 to
$0.09 per share on an annualized basis.
CarSense has been in operation since 1997 and has five locations
operating in the Philadelphia and
Pittsburgh, Pennsylvania, market
areas, including southern New Jersey. CarSense is dedicated
to reconditioning and retailing high-quality, late-model used
vehicles at no-haggle prices through a friendly, comfortable and
transparent buying experience. Commenting on the transaction,
Penske Automotive Group Chairman Roger S.
Penske said, "The acquisition of CarSense, a proven
high-quality and trusted brand with attractive customer
demographics and strong repeat business, continues to diversify our
business and provides Penske Automotive Group with an opportunity
to grow its customer base while capitalizing on the highly
fragmented used automotive retail segment." Penske Automotive
Group Executive Vice President Whit
Ramonat added, "We believe the CarSense model is scalable to
other markets across the United
States and complementary to our existing core auto retail
business. With the completion of this acquisition, we intend
to expand our share of the growing used vehicle
marketplace."
The completion of the transaction is subject to customary
conditions and is expected to close in the first quarter of
2017. An investor presentation relating to this announcement
has been posted to the company's website. To access the
presentation please refer to
www.penskeautomotive.com.
Caution Concerning Forward Looking
Statements
Statements in this press release may involve
forward-looking statements, including forward-looking statements
regarding Penske Automotive Group, Inc.'s consummation of the
transaction and its future sales and earnings potential.
Actual results may vary materially because of risks and
uncertainties that are difficult to predict. These risks and
uncertainties include, among others: fulfillment of closing
conditions, economic conditions generally, conditions in the credit
markets and changes in interest rates and foreign currency exchange
rates, adverse conditions affecting a particular manufacturer,
including the adverse impact to the vehicle and parts supply chain
due to natural disasters, recalls or other disruptions that
interrupt the supply of vehicles or parts to us, changes in
consumer credit availability, the outcome of legal and
administrative matters, and other factors over which management has
limited control. These forward-looking statements should be
evaluated together with additional information about Penske
Automotive's business, markets, conditions and other uncertainties,
which could affect Penske Automotive's future performance.
These risks and uncertainties are addressed in Penske
Automotive's Form 10-K for the year ended December 31, 2015, and its other filings with the
Securities and Exchange Commission ("SEC"). This press
release speaks only as of its date, and Penske Automotive disclaims
any duty to update the information herein.
About Penske Automotive
Penske Automotive Group, Inc.,
(NYSE:PAG) headquartered in Bloomfield
Hills, Michigan, is an international transportation services
company that operates automotive and commercial truck dealerships
principally in the United States,
Western Europe and Canada, and distributes commercial vehicles,
diesel engines, gas engines, power systems and related parts and
services principally in Australia
and New Zealand. PAG employs more than 23,000 people
worldwide and is a member of the Fortune 500 and Russell 2000.
For additional information, visit the company's website at
www.penskeautomotive.com.
Find a vehicle: http://www.penskecars.com
Engage Penske Automotive:
http://www.penskesocial.com
Like Penske Automotive on Facebook:
https://facebook.com/PenskeCars
Follow Penske Automotive on Twitter:
https://twitter.com/Penskecarscorp
Visit Penske Automotive on YouTube:
http://www.youtube.com/penskecars
Inquiries should
contact:
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J. D. Carlson
Executive Vice President and
Chief Financial
Officer
Penske Automotive
Group, Inc.
248-648-2810
jcarlson@penskeautomotive.com
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Anthony R. Pordon
Executive Vice President Investor Relations and Corporate
Development
Penske Automotive
Group, Inc.
248-648-2540
tpordon@penskeautomotive.com
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SOURCE Penske Automotive Group, Inc.