BLOOMFIELD HILLS, Mich., Feb. 16, 2017 /PRNewswire/ -- Penske Automotive Group (NYSE:PAG), an international transportation services provider and a leading retailer of prestige vehicles in the U.K., announced today that it has completed the acquisition of CarShop, one of the U.K.'s leading retailers of used vehicles. CarShop retails high-quality used vehicles at fixed retail prices as part of a transparent customer buying experience.
CarShop has been in operation since 1999 and has five large-scale retail locations operating in Cardiff, Swindon, Northampton, Norwich and Doncaster, plus a 15-acre vehicle preparation center in Leighton Buzzard. CarShop has received numerous awards, including being named U.K. Car Supermarket of the year for two years in a row.
CarShop is expected to generate estimated annualized revenue of approximately $340 million with accretion estimated to be $0.07 to $0.09 per share on an annualized basis.
Commenting on the transaction, Penske Automotive Group Chairman Roger S. Penske said, "The acquisition of CarShop complements our existing core auto retail business and furthers our diversification strategy within the transportation services industry." Penske continued, "The CarShop acquisition along with the acquisition of CarSense in the United States strengthens our position in our core markets and provides scalable future growth opportunities."
Darren Edwards, CEO of Penske Automotive Group's U.K. operations said, "We are delighted to welcome the CarShop team to Penske Automotive Group and look forward to the opportunities this will provide to expand and diversify our business in this sector of the market."
Caution Concerning Forward Looking Statements
Statements in this press release may involve forward-looking statements regarding Penske Automotive Group, Inc.'s 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 24,000 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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J. D. Carlson
Executive Vice President and
Chief Financial Officer
Penske Automotive Group, Inc.
Anthony R. Pordon
Executive Vice President Investor Relations
and Corporate Development
Penske Automotive Group, Inc.
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SOURCE Penske Automotive Group