PAG Penske Automotive Group Inc

BLOOMFIELD HILLS, Mich., Jan. 6, 2017 /PRNewswire/ -- Penske Automotive Group (NYSE: PAG), an international transportation services provider and the leading retailer of prestige vehicles in the U.K., announced today that it has signed an agreement to acquire CarShop, one of the U.K.'s leading retailers of used vehicles. CarShop retails high-quality used vehicles at fixed retail prices as part of a transparent customer buying experience. 

CarShop has been in operation since 1999 and has five large-scale retail locations operating in Cardiff, Swindon, Northampton, Norwich and Doncaster, plus a 15-acre vehicle preparation center in Leighton Buzzard which is capable of reconditioning 45,000 vehicles annually.  CarShop has received numerous awards, including being named U.K. Car Supermarket of the year for two years in a row.  CarShop's leadership team will stay on as part of the acquisition.

Commenting on the transaction, Penske Automotive Group Chairman Roger S. Penske said, "The acquisition of CarShop furthers our diversification strategy within the transportation services industry, and is complementary to our existing core auto retail business."  Penske continued, "Similar to the U.S. market, used vehicle sales in the U.K. are nearly three times the size of new vehicle sales on an annual basis.  The CarShop acquisition, combined with the pending acquisition of CarSense in the United States, strengthens our market position in our two largest markets (United States and United Kingdom) while providing scalable future growth opportunities."

Darren Edwards, Managing Director of Penske Automotive Group's U.K. operations said, "The acquisition of CarShop enables us to further expand and diversify our business into an exciting and growing sector of the market with a proven, highly successful operator.  CarShop's customer-focused and progressive approach fits well within our culture, and we look forward to working with the CarShop team to grow the business over the coming years."   

CarShop CEO Jonathan Dunkley said, "We are thrilled with the opportunity to join forces with the Penske Automotive organization in the U.K. to further develop and grow the CarShop brand.  With our combined resources, we can leverage digital technology, further develop our human capital and deliver a world-class customer experience.  We believe the CarShop model is scalable to other markets across the U.K., and with the significant resources of the Penske organization we believe we have the opportunity to become the largest and most admired Car Supermarket brand in the U.K."  

The acquisition is subject to certain conditions and is expected to close by the end of the first quarter 2017.  CarShop is expected to generate estimated annualized revenue of approximately $340 million with accretion estimated to be $0.07 to $0.09 per share on an annualized basis. An investor presentation relating to this announcement has been posted to the company's website. To access the presentation please refer to www.penskeautomotive.com.  

Caution Concerning Forward Looking Statements
Statements in this press release may involve forward-looking statements, including forward-looking statements regarding Penske Automotive Group, Inc.'s future sales and earnings potential and the ability to consummate the transaction.  Actual results may vary materially because of risks and uncertainties that are difficult to predict.  These risks and uncertainties include, among others: fulfillment of closing conditions, economic conditions generally, conditions in the credit markets and changes in interest rates and foreign currency exchange rates, adverse conditions affecting a particular manufacturer, including the adverse impact to the vehicle and parts supply chain due to natural disasters, recalls or other disruptions that interrupt the supply of vehicles or parts to us, changes in consumer credit availability, the outcome of legal and administrative matters, and other factors over which management has limited 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.  These risks and uncertainties are addressed in Penske Automotive's Form 10-K for the year ended December 31, 2015, and its other filings with the Securities and Exchange Commission ("SEC").  This press release speaks only as of its date, and Penske Automotive disclaims any duty to update the information herein.

About Penske Automotive
Penske Automotive Group, Inc., (NYSE:PAG) headquartered in Bloomfield Hills, Michigan, is an international transportation services company that operates automotive and commercial truck dealerships principally in the United States, Western Europe and Canada, and distributes commercial vehicles, diesel engines, gas engines, power systems and related parts and services principally in Australia and New Zealand.  PAG employs more than 23,000 people worldwide and is a member of the Fortune 500 and Russell 2000.  For additional information, visit the company's website at www.penskeautomotive.com.

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SOURCE Penske Automotive Group, Inc.