PREMIER TRUCK GROUP ACQUIRES RIVER STATES TRUCK AND TRAILER

Rhea-AI Summary

Premier Truck Group, a division of Penske Automotive Group (NYSE: PAG), has acquired River States Truck and Trailer, expanding its operations into Wisconsin and Minnesota. This acquisition is expected to generate an additional $200 million in annual revenue. River States operates five facilities, including three full-service dealerships and two independent repair facilities, which will be integrated into Premier Truck Group’s network. The acquisition enhances Premier Truck Group's footprint to 48 locations across North America and strengthens its service offering with collision centers in Eagan, MN, and La Crosse, WI, extending their heavy truck collision network to 12 centers.

Positive

• The acquisition is projected to add $200 million in annual revenue.
• Expansion into new markets in Wisconsin and Minnesota.
• Enhanced service capabilities with the addition of collision centers in Eagan and La Crosse.
• Increased network footprint to 48 locations across North America.
• Addition of 161,000 sq. ft. of facilities, 96 service bays, and 63 technicians.

Negative

• Potential integration challenges with five new facilities.
• Increased operational complexity due to expanded geographical footprint.
• Potential initial costs and expenses related to the acquisition.

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Expands North American Operations to New Market Areas in Wisconsin and Minnesota

Expected to Add $200 Million in Estimated Annualized Revenue

BLOOMFIELD HILLS, Mich., June 10, 2024 /PRNewswire/ -- Premier Truck Group, an international medium-duty and heavy-duty commercial truck dealership group and a Penske Automotive Group, Inc. company (NYSE:PAG), announced today the acquisition of River States Truck and Trailer, Inc. (RSTT) headquartered in La Crosse, WI.  The acquisition is expected to add $200 million of estimated annualized revenue for Premier Truck Group.

River States operates five facilities strategically located in western Wisconsin and eastern Minnesota along the key trucking lanes of Interstates 90 and 94, between Chicago and Minneapolis, including:

Three Full-Service Freightliner and Western Star Dealerships:

• River States Truck and Trailer – Eau Claire, which will become Premier Truck Group of Eau Claire
• River States Truck and Trailer – La Crosse, which will become Premier Truck Group of La Crosse
• River States Truck and Trailer – Roberts, which will become Premier Truck Group of Roberts

Two Independent Repair Facilities:

• JL Truck and Trailer, located in Osseo, WI
• Minnesota Truck and Trailer, located in Eagan, MN

With the River States acquisition, Premier Truck Group will add an additional 161,000 sq. ft. of facilities, 96 service bays and 63 technicians.

"Premier Truck Group continues to grow our footprint to 48 locations throughout the United States and Canada. Our culture at PTG is to work as one network executing to deliver the best customer experience in North America, achieve operational excellence and maintain an exceptional place for our employees to work" said Ron Long, President and CEO of Premier Truck Group. "In addition to parts, service and truck sales, we will add collision centers with the Eagan and La Crosse locations expanding our nationwide heavy truck collision network to 12 locations.  We look forward to representing the Freightliner and Western Star brands and serving customers in this new market for Premier Truck Group while leveraging our scale as we pursue operational efficiencies." 

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, and Japan 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 28,500 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, 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.

About Premier Truck Group

Premier Truck Group is an international medium and heavy-duty commercial truck dealership group headquartered in Dallas, TX.  The company has 48 locations throughout Texas, Oklahoma, Kansas, Missouri, Tennessee, Georgia, Utah, Idaho, Wisconsin, Minnesota and Oregon in the United States and in Ontario and Manitoba in Canada. Premier Truck Group offers a premium selection of new Freightliner, Western Star, and Thomas Built Buses commercial vehicles, a large selection of previously-owned commercial trucks, and a full suite of maintenance and repair services along with a wide selection of retail parts and accessories. 

Premier Truck Group is a subsidiary of Penske Automotive Group (NYSE: PAG).  For additional information about Premier Truck Group, visit www.premiertruck.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

What is the expected additional annual revenue from Premier Truck Group's acquisition?

The acquisition is expected to add $200 million in estimated annualized revenue.

Which new markets is Premier Truck Group expanding into with the acquisition of River States Truck and Trailer?

Premier Truck Group is expanding into Wisconsin and Minnesota.

How many new facilities will Premier Truck Group acquire through this acquisition?

Premier Truck Group will acquire five facilities through this acquisition.

What is the new total number of locations for Premier Truck Group after the acquisition?

Premier Truck Group will have 48 locations across North America after the acquisition.

What brands will the newly acquired facilities represent?

The newly acquired facilities will represent Freightliner and Western Star brands.