BLOOMFIELD HILLS, Mich., Dec. 12, 2017 /PRNewswire/ -- Penske Automotive Group (NYSE: PAG), an international transportation services provider, announced today that it has signed an agreement to acquire The Car People (https://www.thecarpeople.co.uk), one of the U.K.'s leading retailers of used vehicles. The Car People retails high-quality used vehicles at fixed retail prices as part of a transparent customer buying experience. Established in 2000, The Car People has four large-scale retail locations operating in Wakefield, Sheffield, Manchester and Warrington.
Commenting on the transaction, Penske Automotive Group Chairman Roger S. Penske said, "I am excited to be joining forces with the team at The Car People, a great business that operates under a similar model to our own. The acquisition of The Car People strengthens the company's market position in our second largest market, almost doubles the size of our U.K.-based Used Car Supermarket business, and continues to further our diversification strategy within the transportation services industry."
Darren Edwards, CEO of Penske Automotive Group's U.K. operations said, "The acquisition of The Car People enables us to accelerate the expansion of our Used Car Supermarket Division and reinforces our commitment to significantly grow our used car business. Combined with the acquisition of CarShop earlier this year, this new acquisition will provide for potential significant operational synergies within this part of our business."
The acquisition is subject to customary conditions and is expected to close in the first quarter 2018. The Car People sells approximately 18,000 vehicles per year and is expected to generate estimated annualized revenue of approximately $300 million. Estimated accretion is expected to be between $0.05 to $0.07 per share on an annualized basis.
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 26,000 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 sales, earnings accretion potential and the closing of the transaction. 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, the completion of closing conditions and other factors over which management has limited control. These forward-looking statements should be evaluated together with additional information about Penske Automotive Group's business, markets, conditions and other uncertainties, which could affect Penske Automotive Group's future performance. These risks and uncertainties are addressed in Penske Automotive Group'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 Group disclaims any duty to update the information herein.
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