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|UnitedAuto to Acquire Motorwerks BMW/MINI; Expanding Geographical Presence to Minneapolis/St. Paul Metropolitan Area|
BLOOMFIELD HILLS, Mich.--(BUSINESS WIRE)--March 17, 2006--United Auto Group, Inc. (NYSE: UAG), an international automotive retailer, today announced it has agreed to acquire Motorwerks BMW/MINI in Bloomington, Minnesota, located in metropolitan Minneapolis/St. Paul. Motorwerks is expected to generate approximately $100 million in annualized revenue. The acquisition is subject to completion of due diligence and other customary conditions.
UAG Senior Vice President for Central Operations Whit Ramonat said, "We are excited to enter the Minneapolis/St. Paul metropolitan market. The favorable demographics and diverse economy offer opportunities for future growth of the BMW and MINI brands, and the expansion into this new market enhances UAG's U.S. footprint. Motorwerks BMW enjoys market leadership, and the MINI franchise ranks among the top ten MINI dealerships in the U.S. based on 2005 sales rankings."
Motorwerks is currently constructing a 180,000 square foot, state-of-the-art facility to house BMW and MINI. The new multi-level complex is centrally located and will have the capacity to showcase 300 new and pre-owned vehicles under roof. Additionally, the new facility has been designed to include a variety of amenities to deliver outstanding service, including 40 service bays, comfortable waiting lounges with direct internet access and a cafe.
During 2005, BMW/MINI generated $1.5 billion, or fifteen percent, of UnitedAuto's total revenue. Upon the completion of this transaction, UAG will own 31 BMW/MINI franchises, including 19 BMW and 12 MINI dealerships.
United Auto Group, Inc., headquartered in Bloomfield Hills, Michigan, operates 294 retail automotive franchises, representing 40 different brands, and 27 collision repair centers. UnitedAuto, 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 171 franchises in 19 states and Puerto Rico and 123 franchises located outside the United States, primarily in the United Kingdom. UnitedAuto is a member of the Fortune 500 and Russell 2000 and has approximately 14,000 employees.
Statements in this press release involve forward-looking statements, including forward-looking statements regarding UnitedAuto's expected sales and consummation of this acquisition. Actual results may vary materially because of risks and uncertainties, including the satisfaction of the various customary closing conditions. These forward-looking statements should be evaluated together with additional information about UnitedAuto's business, market 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, 2005, and its other filings with the Securities and Exchange Commission, and which is 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: United Auto Group, Inc. Jim Davidson, 201-325-3303 firstname.lastname@example.org or Tony Pordon, 248-648-2540 email@example.com SOURCE: United Auto Group, Inc.