Penske Automotive Enters Greater Charlotte, NC Market

Rhea-AI Summary

Penske Automotive Group, Inc. (NYSE: PAG) announced its entry into the Charlotte, North Carolina market with the acquisition of Mercedes-Benz of South Charlotte. This acquisition is projected to generate $150 million in annualized revenues. The dealership, spanning over 70,000 square feet with 50 service bays, enhances Penske's position in a rapidly growing area. This acquisition contributes to the company's goal of achieving $1 billion in earnings before taxes in 2023, adding over $700 million in expected annualized revenue this year.

Positive

• Acquisition of Mercedes-Benz of South Charlotte projected to add $150 million in annual revenues.
• The dealership expands Penske's operations into a growing market with 70,000 square feet and 50 service bays.
• The acquisition contributes to Penske's goal of achieving $1 billion in earnings before taxes in 2023.

Negative

• None.

BLOOMFIELD HILLS, Mich., June 4, 2021 /PRNewswire/ -- Penske Automotive Group, Inc. (NYSE: PAG), a diversified international transportation services company, announced today that it has entered the Charlotte, North Carolina market area with the acquisition of Mercedes-Benz of South Charlotte. The acquisition is expected to add $150 million in annualized revenues.

Mercedes-Benz of South Charlotte represents Penske Automotive Group's 26^th world-wide dealership for the Mercedes-Benz brand. The South Charlotte location was originally founded in 2006 and expands the Company's operations to a new market area which is ranked as one of the largest population growth areas in the United States. The dealership includes over 70,000 square feet of facilities, including 50 service bays, to meet the growing demands of this new market for the Company.

"We are thrilled to enter this new market area and we welcome the Mercedes-Benz of South Charlotte team to Penske Automotive Group," said President Rob Kurnick. "With the completion of this acquisition, Penske Automotive Group has now added over $700 million in expected annualized revenue to its operations this year as the company drives to its target goal of achieving $1 billion in earnings before taxes in 2023."

About Penske Automotive
Penske Automotive Group, Inc., (NYSE:PAG) headquartered in Bloomfield Hills, Michigan, is a diversified international transportation services company that operates automotive and commercial truck dealerships principally in the United States, the United Kingdom, Canada, and Western Europe, and distributes commercial vehicles, diesel and gas engines, power systems and related parts and services principally in Australia and New Zealand. PAG is a member of the Fortune 500, Russell 1000, and Russell 3000 indexes, and is ranked among the World's Most Admired Companies by Fortune Magazine. For additional information, visit the company's website 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 expected operating results and growth plans. Actual results may vary materially because of risks and uncertainties that are difficult to predict. These risks and uncertainties include, among others:, the duration, severity and resolution of the COVID-19 pandemic, government mandated restrictions on our business in light of COVID-19 or otherwise, economic conditions generally, conditions in the credit markets, changes in interest rates and foreign currency exchange rates, changes in tariff rates, new rules in place after the recent Brexit accord between the European Union and the U.K. could slow parts originating in the U.K. or Europe for distribution to our dealerships, adverse conditions affecting a particular manufacturer, including the adverse impact to the vehicle and parts supply chain due to limited vehicle availability due to the COVID-19 pandemic, the shortage of automotive semiconductor chips, or other components, 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 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, 2020, 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.

Inquiries should contact:
Shelley Hulgrave	Anthony R. Pordon
Executive Vice President and	Executive Vice President Investor Relations
Chief Financial Officer	and Corporate Development
Penske Automotive Group, Inc.	Penske Automotive Group, Inc.
248-648-2812	248-648-2540
shulgrave@penskeautomotive.com	tpordon@penskeautomotive.com

 

 

View original content to download multimedia:http://www.prnewswire.com/news-releases/penske-automotive-enters-greater-charlotte-nc-market-301305749.html

SOURCE Penske Automotive Group, Inc.

FAQ

What is the significance of Penske Automotive's acquisition of Mercedes-Benz of South Charlotte?

The acquisition is expected to generate $150 million in annualized revenues and expands Penske's operations into a growing market in Charlotte, North Carolina.

How much annualized revenue has Penske Automotive added in 2021?

Penske Automotive has added over $700 million in expected annualized revenue in 2021 through various acquisitions.

What are Penske Automotive's earnings goals for 2023?

Penske Automotive aims to achieve $1 billion in earnings before taxes in 2023.

Where is the new Penske dealership located?

The new Penske dealership is located in the greater Charlotte, North Carolina market.