BLOOMFIELD HILLS, Mich., Dec. 1, 2016
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.
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Inquiries should contact:
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J. D. Carlson
Chief Financial Officer
Penske Automotive Group, Inc.
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Anthony R. Pordon
Penske Automotive Group, Inc.
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SOURCE Penske Automotive Group, Inc.