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PENSKE AUTOMOTIVE GROUP SIGNS AGREEMENT TO ACQUIRE ADDITIONAL PORSCHE DEALERSHIP IN MELBOURNE, AUSTRALIA

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Penske Automotive Group (NYSE: PAG) has signed an agreement to acquire Porsche Centre Melbourne from Porsche Retail Group Australia Pty This acquisition will be PAG's third Porsche location in Melbourne and 25th worldwide. The deal is expected to add $130 million in annualized revenue, bringing the total estimated revenue for the three Melbourne Porsche Dealerships to $260 million. The transaction is anticipated to close by year-end, subject to customary conditions. This expansion strengthens PAG's presence in Australia and enhances its partnership with Porsche in delivering exceptional customer experiences.

Penske Automotive Group (NYSE: PAG) ha firmato un accordo per acquisire Porsche Centre Melbourne dal Porsche Retail Group Australia Pty. Questa acquisizione sarà la terza sede Porsche di PAG a Melbourne e la 25ª a livello mondiale. Si prevede che l'accordo aggiunga 130 milioni di dollari in ricavi annualizzati, portando il totale stimato dei ricavi per i tre concessionari Porsche di Melbourne a 260 milioni di dollari. Si prevede che la transazione si chiuda entro la fine dell'anno, soggetta a condizioni abituali. Questa espansione rafforza la presenza di PAG in Australia e migliora la sua partnership con Porsche nell'offrire esperienze eccezionali ai clienti.

Penske Automotive Group (NYSE: PAG) ha firmado un acuerdo para adquirir Porsche Centre Melbourne del Porsche Retail Group Australia Pty. Esta adquisición será la tercera ubicación de Porsche para PAG en Melbourne y la vigésima quinta a nivel mundial. Se espera que el acuerdo aporte 130 millones de dólares en ingresos anuales, llevando el total estimado de ingresos de los tres concesionarios de Porsche en Melbourne a 260 millones de dólares. Se anticipa que la transacción se cierre a fines de año, sujeta a condiciones habituales. Esta expansión fortalece la presencia de PAG en Australia y mejora su asociación con Porsche para ofrecer experiencias excepcionales a los clientes.

Penske Automotive Group (NYSE: PAG)가 Porsche Retail Group Australia Pty로부터 Porsche Centre Melbourne을 인수하기 위한 계약을 체결했습니다. 이번 인수는 PAG의 멜버른 내 세 번째 포르쉐 매장이자 전 세계 25번째 매장이 될 것입니다. 이번 거래를 통해 연간 1억 3천만 달러의 수익을 추가할 것으로 예상되며, 멜버른의 세 개 포르쉐 대리점의 총 예상 수익은 2억 6천만 달러에 이를 것입니다. 거래는 연말까지 마감될 것으로 예상되며, 일반적인 조건에 따릅니다. 이번 확장은 PAG의 호주 내 입지를 강화하고 우수한 고객 경험을 제공하기 위한 포르쉐와의 파트너십을 강화합니다.

Penske Automotive Group (NYSE: PAG) a signé un accord pour acquérir Porsche Centre Melbourne du Porsche Retail Group Australia Pty. Cette acquisition sera la troisième adresse Porsche de PAG à Melbourne et la 25e dans le monde. On estime que cet accord ajoutera 130 millions de dollars de revenus annuels, portant le total estimé des revenus pour les trois concessions Porsche de Melbourne à 260 millions de dollars. La transaction devrait être finalisée d'ici la fin de l'année, sous réserve des conditions habituelles. Cette expansion renforce la présence de PAG en Australie et améliore son partenariat avec Porsche pour offrir des expériences client exceptionnelles.

Die Penske Automotive Group (NYSE: PAG) hat eine Vereinbarung zum Erwerb des Porsche Centre Melbourne von der Porsche Retail Group Australia Pty unterzeichnet. Diese Akquisition wird der dritte Porsche-Standort von PAG in Melbourne und der 25. weltweit sein. Es wird erwartet, dass der Deal 130 Millionen Dollar an annualisierten Einnahmen hinzufügt, wodurch die geschätzten Gesamteinnahmen für die drei Porsche-Händler in Melbourne auf 260 Millionen Dollar steigen. Die Transaktion soll bis zum Ende des Jahres abgeschlossen werden, vorbehaltlich der üblichen Bedingungen. Diese Expansion stärkt die Präsenz von PAG in Australien und verbessert die Partnerschaft mit Porsche zur Bereitstellung außergewöhnlicher Kundenerlebnisse.

Positive
  • Acquisition adds $130 million in estimated annualized revenue
  • Expands Porsche dealership portfolio to 25 locations worldwide
  • Strategic expansion in Melbourne market with third Porsche location
  • Combined Melbourne Porsche dealerships to generate $260 million in estimated annual revenue
Negative
  • None.

Insights

This strategic acquisition strengthens Penske Automotive's presence in the luxury car market and expands its footprint in Australia. The $130 million in additional annual revenue represents a significant expansion of their Porsche operations in Melbourne, effectively doubling their revenue potential to $260 million in this market. The deal aligns with PAG's international growth strategy and leverages their existing operational infrastructure in Australia.

The luxury automotive sector, particularly Porsche, has shown resilience in economic downturns and maintains strong profit margins. This acquisition capitalizes on the growing luxury vehicle market in Australia and should contribute positively to PAG's earnings. The timing is strategic, as luxury car sales have remained robust despite broader economic uncertainties.

The Australian luxury car market presents significant growth opportunities, with Melbourne being a key metropolitan hub for high-net-worth consumers. This acquisition positions PAG to capture a larger share of the premium vehicle segment in one of Australia's wealthiest cities. The consolidation of three Porsche dealerships in Melbourne creates operational synergies and strengthens PAG's bargaining power with suppliers.

The expansion demonstrates PAG's confidence in the Australian market and the Porsche brand's continued growth trajectory. With PAG's global expertise in luxury vehicle retail and their established presence in Australia, they're well-positioned to optimize operations and enhance customer experience across all three locations.

Acquisition Represents Third Porsche Location in Melbourne and 25th Worldwide

BLOOMFIELD HILLS, Mich., Oct. 23, 2024 /PRNewswire/ -- Penske Automotive Group, Inc. (NYSE: PAG), a diversified international transportation services company and one of the world's premier automotive and commercial truck retailers with operations across four continents and nine countries, has signed an agreement to acquire Porsche Centre Melbourne, located in Melbourne, Australia, from Porsche Retail Group Australia Pty Ltd.  Upon completion of the acquisition, Porsche Centre Melbourne will expand the Company's partnership with Porsche in Melbourne to deliver an exceptional level of customer experience.  The acquisition is expected to add $130 million in estimated annualized revenue, bringing the estimated annualized revenue for the three Porsche Dealerships in Melbourne to $260 million.  The acquisition is subject to customary conditions and is expected to close by the end of this year.  

Commenting on the acquisition, Penske Automotive Group Head of International Operations Randall Seymore said, "We are thrilled to extend our relationship with Porsche in Melbourne and are committed to providing exceptional service and innovative retail experiences that exceed our customers' expectations."

About Penske Automotive

Penske Automotive Group, Inc., (NYSE: PAG) headquartered in Bloomfield Hills, Michigan, is a diversified international transportation services company and one of the world's premier automotive and commercial truck retailers. PAG operates dealerships in the United States, the United Kingdom, Canada, Germany, Italy, Japan and Australia and is one of the largest retailers of commercial trucks in North America for Freightliner. PAG also distributes and retails commercial vehicles, diesel and gas engines, power systems, and related parts and services principally in Australia and New Zealand. PAG employs approximately 28,850 people worldwide. Additionally, PAG owns 28.9% of Penske Transportation Solutions ("PTS"), a business that employs over 44,000 people worldwide, manages one of the largest, most comprehensive and modern trucking fleets in North America with over 442,000 trucks, tractors, and trailers under lease, rental, and/or maintenance contracts and provides innovative transportation, supply chain, and technology solutions to its customers. PAG is a member of the S&P Mid Cap 400, Fortune 500, Russell 1000 and Russell 3000 indexes. For additional information, including the Company's 2023 Corporate Responsibility Report highlighting its corporate responsibility strategies, activities, and certain metrics, 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 acquisition activity and future revenues. Actual results may vary materially because of risks and uncertainties that are difficult to predict. These risks and uncertainties include, among others, our ability to successfully complete the pending acquisition and satisfy applicable closing conditions, our ability to successfully integrate the acquired dealership into our existing operations and obtain certain contemplated synergies, those related to macro-economic, geo-political and industry conditions and events, including their impact on new and used vehicle sales, the availability of consumer credit, changes in consumer demand, consumer confidence levels, fuel prices, demand for trucks to move freight with respect to Penske Transportation Solutions (PTS) and  Premier Truck Group, personal discretionary spending levels, interest rates, and unemployment rates; our ability to obtain vehicles and parts from our manufacturers, especially in light of supply chain disruptions due to natural disasters, the shortage of vehicle components, international conflicts, including the war in Ukraine, challenges in sourcing labor, or labor strikes or work stoppages, or other disruptions; changes in the retail model either from direct sales by manufacturers, a transition to an agency model of sales, sales by online competitors, or from the expansion of electric vehicles; disruptions to the security and availability of our information technology systems and those of our third party providers, which systems are increasingly threatened by ransomware and other cyber-attacks; the effects of a pandemic on the global economy, including our ability to react effectively to changing business conditions in light of any pandemic; the rate of inflation, including its impact on vehicle affordability; changes in interest rates and foreign currency exchange rates; our ability to consummate, integrate, obtain synergies with respect to, and realize returns on our acquisitions; with respect to PTS, changes in the financial health of its customers, labor strikes or work stoppages by its employees, a reduction in PTS' asset utilization rates, continued availability from truck manufacturers and suppliers of vehicles and parts for its fleet, changes in values of used trucks which affects PTS' profitability on truck sales and regulatory risks and related compliance costs, our ability to realize returns on our significant capital investments in new and upgraded dealership facilities; our ability to navigate a rapidly changing automotive and truck landscape; our ability to respond to new or enhanced regulations in both our domestic and international markets relating to dealerships and vehicles sales, including those related to the sales process or emissions standards, as well as changes in consumer sentiment relating to commercial truck sales that may hinder our or PTS' ability to maintain, acquire, sell, or operate trucks; the success of our distribution of commercial vehicles, engines, and power systems; natural disasters; recall initiatives or other disruptions that interrupt the supply of vehicles or parts to us; 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, risks, and other uncertainties, which could affect Penske Automotive Group's future performance. The risks and uncertainties discussed above are not exhaustive and additional risk and uncertainties are addressed in Penske Automotive Group's Form 10-K for the year ended December 31, 2023, its Form 10-Q for the quarterly periods ended March 31, 2024 and June 30, 2024, and its other filings with the Securities and Exchange Commission. 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 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 

 

Penske Automotive Group logo. (PRNewsFoto/Penske Automotive Group)

 

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SOURCE Penske Automotive Group, Inc.

FAQ

How much revenue will the new Porsche Centre Melbourne acquisition add to PAG?

The acquisition is expected to add $130 million in estimated annualized revenue to Penske Automotive Group.

How many Porsche dealerships will PAG own in Melbourne after this acquisition?

After this acquisition, PAG will own three Porsche dealerships in Melbourne, Australia.

When is PAG's Porsche Centre Melbourne acquisition expected to close?

The acquisition is expected to close by the end of 2024, subject to customary conditions.

What will be the total estimated revenue for PAG's Melbourne Porsche dealerships?

The total estimated annualized revenue for the three Porsche dealerships in Melbourne will be $260 million.

Penske Automotive Group, Inc.

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