PENSKE AUTOMOTIVE GROUP TO INCREASE PRESENCE IN FLORIDA

Rhea-AI Summary

Penske Automotive Group (NYSE: PAG) signed an agreement to acquire Lexus of Orlando and Lexus of Winter Park in the Orlando metro area, a transaction expected to add $450 million in annualized revenue. Closing is expected in Q1 2026 and remains subject to customary conditions. The company plans to fund the purchase with cash flow from operations and availability under its U.S. credit agreement. The acquisition is described as a strategic expansion of PAG's scale in Central Florida and will leverage the company's existing local infrastructure.

Positive

• Adds $450 million in expected annualized revenue
• Expands PAG scale in fast-growing Central Florida market
• Planned funding via cash flow and U.S. credit availability

Negative

• Transaction is subject to customary closing conditions
• Realization of synergies depends on successful integration of dealerships

News Market Reaction

+0.60%

1 alert

+0.60% News Effect

On the day this news was published, PAG gained 0.60%, reflecting a mild positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

Expected annualized revenue: $450 million Global employees: over 27,700 PTS ownership stake: 28.9% +2 more

5 metrics

Expected annualized revenue $450 million From acquisition of two Lexus dealerships in Central Florida

Global employees over 27,700 Penske Automotive Group worldwide workforce

PTS ownership stake 28.9% Equity interest in Penske Transportation Solutions

PTS employees nearly 42,000 Penske Transportation Solutions worldwide workforce

PTS fleet size approximately 400,000 Trucks, tractors, and trailers under lease, rental, and/or maintenance

Market Reality Check

Price: $158.79 Vol: Volume 216,074 vs 20-day ...

normal vol

$158.79 Last Close

Volume Volume 216,074 vs 20-day average 235,077 (relative volume 0.92x). normal

Technical Price 159.36 is trading below the 200-day MA at 168.02 and ~15.9% under the 52-week high.

Peers on Argus

PAG fell 2.42% while key peers like LAD -2.73%, KMX -2.63%, and GPI -1.86% also ...

PAG fell 2.42% while key peers like LAD -2.73%, KMX -2.63%, and GPI -1.86% also declined, indicating broader sector weakness even as PAG announced a growth-focused acquisition.

Historical Context

5 past events · Latest: Jan 21 (Neutral)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Jan 21	Earnings call scheduled	Neutral	+2.6%	Announcement of timing for Q4 and full-year 2025 results call.
Nov 19	Acquisition expansion	Positive	+0.5%	Acquisition of four high-volume California and Texas dealerships.
Oct 29	Quarterly earnings	Neutral	-1.4%	Q3 2025 results with slight revenue growth but lower EPS and net income.
Oct 15	Dividend increase	Positive	-1.0%	4.5% hike in quarterly dividend to $1.38 per share.
Oct 10	Earnings call scheduled	Neutral	-1.1%	Scheduling of Q3 2025 results release and investor call.

Pattern Detected

Recent corporate actions such as acquisitions and dividend increases have produced relatively modest and sometimes mixed price reactions, with both positive and neutral news occasionally followed by mild declines.

Recent Company History

Over the past few months, PAG has combined capital returns and expansion. A dividend increase on Oct 15, 2025 and a Q3 2025 earnings report on Oct 29, 2025 were followed by modest share price declines. The company then announced a sizable multi-dealership acquisition in California and Texas on Nov 19, 2025, tied to about $1.5 billion in expected annualized revenue, with a small positive reaction. The current Florida Lexus acquisition continues this dealership growth strategy.

Regulatory & Risk Context

Active S-3 Shelf

Shelf Active

Active S-3 Shelf Registration 2025-10-30

PAG has an effective automatic shelf registration on Form S-3ASR filed on Oct 30, 2025, allowing offerings of debt, preferred stock, common stock, warrants, and subscription rights for general corporate purposes including acquisitions, facility investments, debt service, dividends, and repurchases.

Market Pulse Summary

This announcement adds another step in PAG’s acquisition-led growth strategy, with two Florida Lexus...

Analysis

This announcement adds another step in PAG’s acquisition-led growth strategy, with two Florida Lexus dealerships expected to contribute $450 million in annualized revenue funded via operations and its U.S. credit agreement. Recent history includes a large multi-state dealership purchase and ongoing dividend increases. Investors may track closing timing, integration of the new stores into existing Florida infrastructure, and how future earnings reports reflect revenue and margin contributions from these acquisitions.

Key Terms

annualized revenue, credit agreement, forward-looking statements, Form 10-K, +2 more

6 terms

annualized revenue financial

"The acquisition is expected to add $450 million in annualized revenue."

Annualized revenue is a way to estimate how much money a company will earn in a year based on its current sales over a shorter period. It helps investors understand the company's consistent earning power, kind of like projecting your monthly earnings to see what you might make in a full year.

credit agreement financial

"fund the purchase price using cash flow from operations and availability under its U.S. credit agreement."

A credit agreement is a written loan contract between a borrower and a bank or other lender that lays out how much money can be borrowed, the interest rate, repayment schedule, fees, and the rules the borrower must follow. For investors, it matters because those terms affect a company’s cash costs, borrowing flexibility and risk of default — similar to how a mortgage’s rules determine a homeowner’s monthly budget and freedom to make changes.

forward-looking statements regulatory

"Caution Concerning Forward Looking StatementsStatements in this press release may involve forward-looking statements,"

Forward-looking statements are predictions or plans that companies share about what they expect to happen in the future, like estimating sales or profits. They matter because they help investors understand a company's outlook, but since they are based on guesses and assumptions, they can sometimes be wrong.

Form 10-K regulatory

"addressed in Penske Automotive Group's Form 10-K for the year ended December 31, 2024,"

A Form 10-K is a comprehensive report that publicly traded companies are required to file annually with regulators. It provides a detailed overview of a company's financial health, operations, and risks, similar to a detailed health report. Investors use this information to assess the company's performance and make informed decisions about buying or selling its stock.

Form 10-Q regulatory

"its Form 10-Q for the quarterly periods ended March 31, 2025, June 30, 2025, and September 30, 2025"

A Form 10-Q is a detailed report that publicly traded companies are required to file with regulators three times a year, providing an update on their financial health and business activities. It is important for investors because it offers timely insights into a company's performance, helping them make informed decisions about buying or selling stocks. Think of it as a regular check-up report that shows how well a company is doing.

Securities and Exchange Commission regulatory

"and its other filings with the Securities and Exchange Commission."

A national government agency that enforces rules for buying, selling and disclosing information about stocks and other investments, acting like a referee and scorekeeper for financial markets. It requires companies to share clear, regular financial and business information and investigates fraud or rule-breaking, which matters to investors because those rules and disclosures help ensure fair prices, reduce hidden risks and make it easier to compare investment choices.

AI-generated analysis. Not financial advice.

Signs Agreement to Acquire Two Lexus Dealerships in Central Florida

Expected to Add $450 Million in Annualized Revenue

BLOOMFIELD HILLS, Mich., Jan. 26, 2026 /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 eight countries, announced today that it has signed an agreement to acquire Lexus of Orlando and Lexus of Winter Park, both located in the Orlando metropolitan area of Central Florida.  The acquisition is expected to add $450 million in annualized revenue.   

Commenting on the acquisition, North American Operations Officer Rich Shearing said, "The acquisition of these premier Lexus dealerships represents another strategic addition to the Penske Automotive Group portfolio.  The acquired dealerships will expand the Company's scale in one of the fastest growing states in the country while leveraging the Company's existing infrastructure in Central Florida."

Closing of the transaction is expected to occur during the first quarter of 2026 and is subject to customary conditions.  The Company expects to fund the purchase price using cash flow from operations and availability under its U.S. credit agreement.

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 over 27,700 people worldwide. Additionally, PAG owns 28.9% of Penske Transportation Solutions ("PTS"), a business that employs nearly 42,000 people worldwide, manages one of the largest, most comprehensive and modern trucking fleets in North America with approximately 400,000 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, 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 complete customary closing conditions, our ability to successfully integrate the acquired dealerships into our existing operations, obtain certain contemplated synergies and realize returns related to these acquisitions, those related to macro-economic, geo-political and industry conditions and events, including their impact on sales of new and used vehicles, service and parts, and repair and maintenance services, 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 and other freight metrics such as spot rates or miles driven, personal discretionary spending levels, interest rates, foreign currency exchange 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, tariffs and non-tariff trade barriers, any shortages of vehicle components, international conflicts, challenges in sourcing labor, labor strikes or work stoppages, or other disruptions; the control our manufacturer partners can exert over our operations and our reliance on them for various aspects of our business; risks to our reputation and those of our manufacturer partners; changes in the retail model from direct sales by manufacturers, a transition to an agency model of sales, sales by online competitors, or from the expansion of EVs; 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 impact of tariffs targeting imported vehicles and parts, as well as changes or increases in tariffs, trade restrictions, trade disputes or non-tariff trade barriers; 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 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, the cost of acquiring and the continued availability from truck manufacturers and suppliers of vehicles and parts for its fleet, including with respect to the effect of various regulations concerning its vehicle 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, emissions standards or electrification; 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 risks and uncertainties are addressed in Penske Automotive Group's Form 10-K for the year ended December 31, 2024, its Form 10-Q for the quarterly periods ended March 31, 2025, June 30, 2025, and September 30, 2025 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

What did Penske Automotive (PAG) announce on January 26, 2026?

PAG announced an agreement to acquire Lexus of Orlando and Lexus of Winter Park, expected to add $450M in annualized revenue.

When is the Penske Automotive (PAG) acquisition of the two Lexus dealerships expected to close?

The company expects the transaction to close during Q1 2026, subject to customary conditions.

How will Penske Automotive (PAG) fund the Lexus dealerships acquisition?

PAG expects to fund the purchase price using cash flow from operations and availability under its U.S. credit agreement.

How much annualized revenue is the Penske Automotive (PAG) deal expected to add?

The acquisition is expected to add approximately $450 million in annualized revenue.

What investor risks did Penske Automotive (PAG) note about the acquisition?

PAG highlighted risks including the ability to complete closing conditions and to successfully integrate the acquired dealerships and realize expected synergies.