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
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.
Bob O'Shaughnessy, 248-648-2800
Chief Financial Officer
Tony Pordon, 248-648-2540
Senior Vice President
SOURCE: Penske Automotive Group, Inc.