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|Penske Automotive to Acquire Rallye Motors|
Franchises Represent $700 Million in Annualized Revenue
BLOOMFIELD HILLS, Mich.--(BUSINESS WIRE)--Nov. 7, 2007--Penske Automotive Group, Inc. (NYSE:PAG), an international automotive retailer, has signed an agreement to acquire Rallye Motors located on Long Island in the cities of Glen Cove, Roslyn and Westbury, New York.
Rallye Motors represents the Acura, BMW, Lexus and Mercedes-Benz brands, providing customers an array of premium vehicle choices. Rallye also owns and operates a stand-alone, 52,000-square-foot collision center, which is part of the acquisition. Based on rankings by each brand, Rallye's Acura, BMW and Mercedes-Benz dealerships are currently listed in the top 20 of their respective brands' new unit sales in the United States.
"Rallye Motors represents an opportunity to own and operate outstanding brands in the tremendous Long Island retail automotive market," said Penske Automotive Group President Roger S. Penske, Jr. "For over 45 years, Rallye Motors has focused on a commitment to customer service and loyalty. Once the acquisition is completed, these strong brands will further strengthen Penske Automotive's outstanding brand mix and will complement our existing operations in the New York metropolitan area."
The Rallye Motors' franchises represent approximately $700 million in revenue on an annualized basis. The transaction is expected to close during the first quarter of 2008 and will be financed using cash flow from operations and availability under the company's U.S. credit agreement. Closing of the transaction is subject to customary conditions, including due diligence and manufacturer approvals.
Penske Automotive Group, Inc., headquartered in Bloomfield Hills, Michigan, operates 307 retail automotive franchises, representing 40 different brands, and 26 collision repair centers. Penske Automotive, which sells new and previously owned vehicles, finance and insurance products and replacement parts, and offers maintenance and repair services on all brands it represents, has 162 franchises in 19 states and Puerto Rico and 145 franchises located outside the United States, primarily in the United Kingdom. Penske Automotive is a member of the Fortune 500 and Russell 1000 and has 16,000 employees.
Statements in this press release may involve forward-looking statements, including forward-looking statements regarding Penske Automotive Group, Inc. future sales potential. Actual results may vary materially because of risks and uncertainties, including satisfaction of closing conditions and external factors such as interest rate fluctuations, changes in consumer spending and other factors over which management has no 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, which are contained in Penske Automotive's Form 10-K for the year ended December 31, 2006, and its other filings with the Securities and Exchange Commission and which are incorporated into this press release by reference. This press release speaks only as of its date, and Penske Automotive disclaims any duty to update the information herein.
CONTACT: Penske Automotive Group, Inc.