BLOOMFIELD HILLS, Mich.,
Sept. 7, 2017 /PRNewswire/
-- Penske Automotive Group, Inc. (NYSE:PAG), an international
transportation services company, announced today that it has
acquired an additional 5.5% interest in Penske Truck Leasing Co.,
L.P. ("PTL"), a leading provider of transportation services
and supply chain management, from subsidiaries of GE Capital Global
Holdings, LLC, for approximately $239
million. The purchase price was funded using the existing
liquidity on the company's U.S. credit agreement.
By acquiring the additional 5.5% ownership interest in PTL, the
company expects to realize earnings accretion, additional cash flow
from cash tax savings and an increase in the annual cash
distribution PTL provides to its partners. The company
estimates the earnings per share accretion from this transaction of
$0.10 per share on an annualized
basis.
PAG will continue to account for the ownership interest in PTL
using the equity method of accounting and will record its share of
PTL's earnings under the caption "Equity in earnings of affiliates"
in its statement of income.
At the same time, Mitsui & Co., Ltd. ("Mitsui"), our second
largest shareholder, acquired an additional 10% ownership interest
in PTL at the same valuation. After completion of these
transactions, PTL is owned 41.1% by Penske Corporation, 28.9% by
Penske Automotive Group, and 30% by Mitsui.
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, Canada and Western
Europe, 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 25,000 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.
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 earnings accretion potential.
Actual results may vary materially because of risks and
uncertainties that are difficult to predict. These risks and
uncertainties include, among others: 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, recall 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,
2016, 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.
Find a vehicle: http://www.penskecars.com
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http://www.penskesocial.com
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https://facebook.com/PenskeCars
Follow Penske Automotive on Twitter:
https://twitter.com/penskesocial
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https://www.instagram.com/penskecars/
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http://www.youtube.com/penskecars
Inquiries should contact:
Contacts:
|
J.D.
Carlson
Executive Vice
President and
Chief Financial
Officer
248-648-2810
jcarlson@penskeautomotive.com
|
Anthony R. Pordon
Executive Vice President – Investor Relations and Corporate
Development
248-648-2540
tpordon@penskeautomotive.com
|
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SOURCE Penske Automotive Group, Inc.