PENSKE AUTOMOTIVE GROUP COMPLETES ACQUISITION OF PORSCHE DEALERSHIPS IN MELBOURNE, AUSTRALIA

Penske Automotive Group (NYSE: PAG) announced the completion of its acquisition of Porsche Centre Brighton and Porsche Centre Doncaster in Melbourne, Australia, bringing its total number of Porsche dealerships to 24 globally.

Rhea-AI Summary

Penske Automotive Group (NYSE: PAG) announced the completion of its acquisition of Porsche Centre Brighton and Porsche Centre Doncaster in Melbourne, Australia, bringing its total number of Porsche dealerships to 24 globally. This acquisition is projected to generate an estimated $130 million in annualized revenue. Head of International Operations, Randall Seymore, expressed enthusiasm about expanding PAG's presence in Australia and strengthening their partnership with Porsche. As part of the strategic move, PAG decided to divest a Ducati dealership acquired during the transaction.

Penske Automotive Group is a global transportation services company with operations across nine countries and approximately 28,000 employees. PAG is also a significant player in commercial truck retail and owns a substantial stake in Penske Transportation Solutions, which manages a large fleet of trucks and offers various transportation and supply chain services.

Positive

• The acquisition of two Porsche dealerships in Melbourne expands PAG's global footprint to 24 Porsche dealerships.
• The acquisition is expected to add $130 million in estimated annualized revenue.
• Strengthened partnership with Porsche, enhancing brand presence in Australia.
• PAG leverages existing operations in Australia for better market integration.
• PAG's global operations span nine countries, showcasing its extensive international reach.
• PAG is a member of prominent indexes like S&P Mid Cap 400, Fortune 500, Russell 1000, and Russell 3000.

Negative

• Strategic divestiture of the Ducati dealership might indicate potential focus shift or financial reallocation needs.
• Potential integration challenges with the new dealerships might temporarily impact operational efficiency.

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BLOOMFIELD HILLS, Mich., June 4, 2024 /PRNewswire/ -- Penske Automotive Group, Inc. (NYSE: PAG), a diversified international transportation services company and one of the world's premier automotive and commercial truck retailers with operations across four continents and nine countries, has completed its acquisition of Porsche Centre Brighton and Porsche Centre Doncaster located in Melbourne, Australia, expanding its portfolio to 24 Porsche dealerships worldwide.  The acquisition is expected to add $130 million in estimated annualized revenue. 

Commenting on the acquisition, Penske Automotive Group Head of International Operations Randall Seymore said, "We are delighted to grow our presence in Australia while expanding our worldwide partnership with the Porsche brand.  We look forward to representing Porsche and serving customers in this important market while leveraging our existing operations in Australia." 

For strategic purposes, Penske Automotive Group elected to dispose of the Ducati dealership associated with the acquisition.

About Penske Automotive
Penske Automotive Group, Inc., (NYSE: PAG) headquartered in Bloomfield Hills, Michigan, is a diversified international transportation services company and one of the world's premier automotive and commercial truck retailers. PAG operates dealerships in the United States, the United Kingdom, Canada, Germany, Italy, Japan and Australia and is one of the largest retailers of commercial trucks in North America for Freightliner. PAG also distributes and retails commercial vehicles, diesel and gas engines, power systems, and related parts and services principally in Australia and New Zealand. PAG employs approximately 28,000 people worldwide. Additionally, PAG owns 28.9% of Penske Transportation Solutions ("PTS"), a business that employs over 44,000 people worldwide, manages one of the largest, most comprehensive and modern trucking fleets in North America with over 439,000 trucks, tractors, and trailers under lease, rental, and/or maintenance contracts and provides innovative transportation, supply chain, and technology solutions to its customers. PAG is a member of the S&P Mid Cap 400, Fortune 500, Russell 1000, and Russell 3000 indexes. For additional information, including the Company's 2023 Corporate Responsibility Report highlighting its corporate responsibility strategies, activities, and certain metrics, visit the Company's website at 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 acquisition activity and future revenues. Actual results may vary materially because of risks and uncertainties that are difficult to predict. These risks and uncertainties include, among others, our ability to successfully integrate the acquired dealerships into our existing operations and obtain certain contemplated synergies, those related to macro-economic, geo-political and industry conditions and events, including their impact on new and used vehicle sales, the availability of consumer credit, changes in consumer demand, consumer confidence levels, fuel prices, demand for trucks to move freight with respect to Penske Transportation Solutions (PTS) and PTG, personal discretionary spending levels, interest rates, and unemployment rates; our ability to obtain vehicles and parts from our manufacturers, especially in light of supply chain disruptions due to natural disasters, the shortage of vehicle components, international conflicts, including the war in Ukraine, challenges in sourcing labor, or labor strikes or work stoppages, or other disruptions; changes in the retail model either from direct sales by manufacturers, a transition to an agency model of sales, sales by online competitors, or from the expansion of electric vehicles; the effects of a pandemic on the global economy, including our ability to react effectively to changing business conditions in light of any pandemic; the rate of inflation, including its impact on vehicle affordability; changes in interest rates and foreign currency exchange rates; our ability to consummate, integrate, and realize returns on acquisitions; with respect to PTS, changes in the financial health of its customers, labor strikes or work stoppages by its employees, a reduction in PTS' asset utilization rates, continued availability from truck manufacturers and suppliers of vehicles and parts for its fleet, changes in values of used trucks which affects PTS' profitability on truck sales and regulatory risks and related compliance costs, our ability to realize returns on our significant capital investments in new and upgraded dealership facilities; our ability to navigate a rapidly changing automotive and truck landscape; our ability to respond to new or enhanced regulations in both our domestic and international markets relating to dealerships and vehicles sales, including those related to the sales process or emissions standards, as well as changes in consumer sentiment relating to commercial truck sales that may hinder our or PTS' ability to maintain, acquire, sell, or operate trucks; the success of our distribution of commercial vehicles, engines, and power systems; natural disasters; recall initiatives or other disruptions that interrupt the supply of vehicles or parts to us; 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 Group's business, markets, conditions, risks, and other uncertainties, which could affect Penske Automotive Group's future performance. The risks and uncertainties discussed above are not exhaustive and additional risk and uncertainties are addressed in Penske Automotive Group's Form 10-K for the year ended December 31, 2023, its Form 10-Q for the three months ended March 31, 2024, and its other filings with the Securities and Exchange Commission. This press release speaks only as of its date, and Penske Automotive Group disclaims any duty to update the information herein.

Inquiries should contact:

Shelley Hulgrave	Anthony Pordon
Executive Vice President and	Executive Vice President Investor Relations
Chief Financial Officer	and Corporate Development
Penske Automotive Group, Inc.	Penske Automotive Group, Inc.
248-648-2812	248-648-2540
shulgrave@penskeautomotive.com	tpordon@penskeautomotive.com

 

 

 

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SOURCE Penske Automotive Group, Inc.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What is the impact of Penske Automotive Group's acquisition of Porsche dealerships in Melbourne on its revenue?

The acquisition of the Porsche dealerships in Melbourne is expected to add $130 million in estimated annualized revenue.

How many Porsche dealerships does Penske Automotive Group now own globally?

With the recent acquisition, Penske Automotive Group now owns 24 Porsche dealerships worldwide.

Which dealerships did Penske Automotive Group acquire in Melbourne?

Penske Automotive Group acquired Porsche Centre Brighton and Porsche Centre Doncaster in Melbourne, Australia.

Why did Penske Automotive Group sell the Ducati dealership?

Penske Automotive Group decided to dispose of the Ducati dealership for strategic purposes.

How does the acquisition affect Penske Automotive Group's operations in Australia?

The acquisition enhances PAG's presence in Australia and allows it to leverage existing operations for better market integration.

What is the stock symbol for Penske Automotive Group?

The stock symbol for Penske Automotive Group is PAG.