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
Tony Pordon, 248-648-2540
SOURCE: UnitedAuto Group, Inc.