BLOOMFIELD HILLS, Mich., Dec 21, 2007 (BUSINESS WIRE) -- Penske Automotive Group, Inc. (NYSE:PAG), an international
automotive retailer, said today that it and Rallye Motors have
mutually agreed to terminate the previously announced agreement to
acquire Rallye Motors by Penske Automotive Group.
Previously, Penske Automotive Group announced that it had signed
an agreement to acquire Rallye Motors representing approximately $700
million in annualized revenue, subject to customary conditions. The
expected closing date of this transaction was anticipated to be in the
first quarter of 2008.
Penske Automotive Group has completed acquisitions in 2007 that
are expected to generate approximately $450 million in gross
annualized revenue and will provide guidance as to the level of
anticipated 2008 acquisitions in connection with the announcement of
its fourth quarter results.
Penske Automotive Group, Inc., headquartered in Bloomfield Hills,
Michigan, operates 305 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 160 franchises in 18 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.
SOURCE: Penske Automotive Group, Inc.
Penske Automotive Group, Inc.
Chief Financial Officer
Senior Vice President