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|UnitedAuto to Enter New Market Area - Northern California; Company Agrees to Acquire Six Franchises with Estimated Annual Revenue of $300 Million|
BLOOMFIELD HILLS, Mich.--(BUSINESS WIRE)--May 19, 2004--UnitedAuto Group, Inc. (NYSE:UAG), a FORTUNE 500 automotive specialty retailer, today announced that it has signed a definitive agreement to acquire four Honda franchises and two Acura franchises from the Ted Stevens Automotive Network in the San Francisco Bay area.
The franchises to be acquired are: -- Capitol Honda in San Jose -- Marin Honda in Marin County -- Honda North in Fresno -- Gavilan Honda in Gilroy -- Los Gatos Acura in San Jose/Los Gatos -- Sunnyvale Acura in San Jose/Sunnyvale
Commenting on the acquisitions, UnitedAuto Chairman Roger Penske said, "These outstanding businesses represent a unique opportunity to enter the northern California market with a substantial footprint. These dealerships expand our presence in California and further illustrate our disciplined acquisition approach to develop scale in selected markets. We are excited to add the Honda and Acura brands to our existing portfolio in California."
The transaction is subject to customary closing conditions and is expected to close during the third quarter of 2004.
UnitedAuto currently operates 12 franchises in southern California. Upon completion of this transaction, UnitedAuto will operate 18 franchises in California and 20 Honda and Acura franchises in the United States.
UnitedAuto, which has pursued a strategy based on internal growth from its existing dealerships, as well as from strategic acquisitions, operates 136 franchises in the United States and 84 franchises internationally, primarily in the United Kingdom. UnitedAuto dealerships sell new and used vehicles, and market a complete line of after-market automotive products and services.
Statements in this press release may involve forward-looking statements, including forward-looking statements regarding UnitedAuto's expansion plans. Actual results may vary materially because of risks and uncertainties, including 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 UnitedAuto's business, markets, conditions and other uncertainties, which could affect UnitedAuto's future performance, which are contained in UnitedAuto's Form 10-K for the year ended December 31, 2003 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 UnitedAuto disclaims any duty to update the information herein.
CONTACT: UnitedAuto Group, Inc. Jim Davidson, 201-325-3303 firstname.lastname@example.org or Investor Relations Tony Pordon, 248-648-2540 email@example.com SOURCE: UnitedAuto Group, Inc.