PENSKE AUTOMOTIVE GROUP SIGNS AGREEMENT TO ACQUIRE ADDITIONAL PORSCHE DEALERSHIP IN MELBOURNE, AUSTRALIA

Penske Automotive Group (NYSE: PAG) has signed an agreement to acquire Porsche Centre Melbourne from Porsche Retail Group Australia Pty This acquisition will be PAG's third Porsche location in Melbourne and 25th worldwide.

Rhea-AI Summary

Penske Automotive Group (NYSE: PAG) has signed an agreement to acquire Porsche Centre Melbourne from Porsche Retail Group Australia Pty This acquisition will be PAG's third Porsche location in Melbourne and 25th worldwide. The deal is expected to add $130 million in annualized revenue, bringing the total estimated revenue for the three Melbourne Porsche Dealerships to $260 million. The transaction is anticipated to close by year-end, subject to customary conditions. This expansion strengthens PAG's presence in Australia and enhances its partnership with Porsche in delivering exceptional customer experiences.

Positive

• Acquisition adds $130 million in estimated annualized revenue
• Expands Porsche dealership portfolio to 25 locations worldwide
• Strategic expansion in Melbourne market with third Porsche location
• Combined Melbourne Porsche dealerships to generate $260 million in estimated annual revenue

Negative

• None.

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Acquisition Represents Third Porsche Location in Melbourne and 25^th Worldwide

BLOOMFIELD HILLS, Mich., Oct. 23, 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 signed an agreement to acquire Porsche Centre Melbourne, located in Melbourne, Australia, from Porsche Retail Group Australia Pty Ltd.  Upon completion of the acquisition, Porsche Centre Melbourne will expand the Company's partnership with Porsche in Melbourne to deliver an exceptional level of customer experience.  The acquisition is expected to add $130 million in estimated annualized revenue, bringing the estimated annualized revenue for the three Porsche Dealerships in Melbourne to $260 million.  The acquisition is subject to customary conditions and is expected to close by the end of this year.  

Commenting on the acquisition, Penske Automotive Group Head of International Operations Randall Seymore said, "We are thrilled to extend our relationship with Porsche in Melbourne and are committed to providing exceptional service and innovative retail experiences that exceed our customers' expectations."

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 28,850 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 442,000 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 complete the pending acquisition and satisfy applicable closing conditions, our ability to successfully integrate the acquired dealership 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  Premier Truck Group, 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; disruptions to the security and availability of our information technology systems and those of our third party providers, which systems are increasingly threatened by ransomware and other cyber-attacks; 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, obtain synergies with respect to, and realize returns on our 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 quarterly periods ended March 31, 2024 and June 30, 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.

How much revenue will the new Porsche Centre Melbourne acquisition add to PAG?

The acquisition is expected to add $130 million in estimated annualized revenue to Penske Automotive Group.

How many Porsche dealerships will PAG own in Melbourne after this acquisition?

After this acquisition, PAG will own three Porsche dealerships in Melbourne, Australia.

When is PAG's Porsche Centre Melbourne acquisition expected to close?

The acquisition is expected to close by the end of 2024, subject to customary conditions.

What will be the total estimated revenue for PAG's Melbourne Porsche dealerships?

The total estimated annualized revenue for the three Porsche dealerships in Melbourne will be $260 million.