Blog Coverage Penske Automotive Group Increases its Presence in the UK with Acquisition of CarShop

Upcoming AWS Coverage on AutoNation

LONDON, UK / ACCESSWIRE / January 9, 2017 / Active Wall St. blog coverage looks at the headline from Bloomfield Hills, Michigan based Penske Automotive Group, Inc. (NYSE: PAG) as the Company announced on January 06, 2017, that is acquiring UK-based retail chain of used cars – CarShop. The financial details of the deal were not disclosed. However, the deal is subject to regulatory approvals and closing conditions and is expected to close in the first quarter of 2017. Register with us now for your free membership and blog access at:

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One of Penske Automotive Group’s competitors within the Auto Dealerships space, AutoNation, Inc. (NYSE: AN), is estimated to report earnings on January 26, 2017. AWS will be initiating a research report on AutoNation following the release of its next earnings results.

Today, AWS is promoting its blog coverage on PAG; touching on AN. Get all of our free blog coverage and more by clicking on the links below:

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CarShop is a leading used car supermarket in UK. In November 2016, it was awarded the “Used Car Supermarket of the Year Award” second time in a row at the Car Dealer Awards, held at The Brewery in London. CarShop started its operations in 1999 and has retail locations at Cardiff, Swindon, Northampton, Norwich, and Doncaster. Apart from this CarShop has a 15-acre vehicle preparation center in Leighton Buzzard with capacity to recondition 45,000 vehicles annually. It also has franchise for MG Motors and operates from four of its locations.

Commenting on the acquisition, Roger S. Penske, Chairman of PAG said:

“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.”

Jonathan Dunkley CEO of CarShop added, “We believe the CarShop model is scalable to other markets across the UK, 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 UK.”

PAG expects that the acquisition of CarShop will add $340 million (£275 million) to its annual revenues and an accretion of $0.07 to $0.09 per share on an annualized basis. Post the closure of the acquisition, CarShop will continue to use the brand name and be led by its current management team.

PAG’s growing footprints

PAG is a leading automotive and commercial truck dealerships Company with presence in US, Canada, and Western Europe. In Australia and New Zealand, PAG distributes commercial vehicles, diesel engines, gas engines, power systems, and related parts and services. It has over 23,000 employees across these global locations. This is not PAG’s first foray in the UK’s automotive market. PAG owns The Sytner Group, which is UK’s leading car dealership group based on revenue. Currently, Sytner has 140 retail locations across the UK, over 7,500 employees and retails over 135,000 cars per annum.

In December 2016, PAG had acquired CarSense a stand-alone specialty retailer of used vehicles in US. The deal is expected to close in the first quarter of 2017. With the current acquisition of CarShop, and CarSense, PAG would have an impressive presence in growing used vehicle marketplace. PAG had also acquired six franchises in Bologna, Italy in October 2016, which included three Porsche and one each of Audi, Land Rover, and Volvo. In July 2016, PAG had acquired 12 franchises Audi, BMW, MINI, SEAT, Skoda including seven VW ones.

Brief Financial Overview

In October 2016, PAG had announced its third quarter results for the period ending on September 30, 2016. Its revenues for the third quarter were $5.2 billion and EBITDA of $176.7 million. In the third quarter, the Company’s UK business also performed well regardless of the Brexit and generated 6.9% increase in their same-store unit volume.

Stock Performance

At the close of trading on January 06, 2017, Penske Automotive Group’s share price finished the session at $51.82, slightly down by 0.17%. A total volume of 444.96 thousand shares exchanged hands. The stock has surged 66.08% and 51.25% in the last six months and past twelve months, respectively. The stock is trading at a PE ratio of 13.44 and has a dividend yield of 2.24%. Additionally, the stock has a market capital of $4.44 billion.

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