Penske Automotive Group (PAG) Enters Agreement to Acquire CarSense; Sees Immediate Accretion
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Penske Automotive Group (NYSE: PAG) announced that it has signed an agreement to acquire CarSense, a stand-alone specialty retailer of used vehicles in the United States. The acquisition is expected to generate estimated annual revenue of approximately $350 million with accretion estimated to be $0.07 to $0.09 per share on an annualized basis.
CarSense has been in operation since 1997 and has five locations operating in the Philadelphia and Pittsburgh, Pennsylvania, market areas, including southern New Jersey. CarSense is dedicated to reconditioning and retailing high-quality, late-model used vehicles at no-haggle prices through a friendly, comfortable and transparent buying experience. Commenting on the transaction, Penske Automotive Group Chairman Roger S. Penske said, "The acquisition of CarSense, a proven high-quality and trusted brand with attractive customer demographics and strong repeat business, continues to diversify our business and provides Penske Automotive Group with an opportunity to grow its customer base while capitalizing on the highly fragmented used automotive retail segment." Penske Automotive Group Executive Vice President Whit Ramonat added, "We believe the CarSense model is scalable to other markets across the United States and complementary to our existing core auto retail business. With the completion of this acquisition, we intend to expand our share of the growing used vehicle marketplace."
The completion of the transaction is subject to customary conditions and is expected to close in the first quarter of 2017. An investor presentation relating to this announcement has been posted to the company's website. To access the presentation please refer to www.penskeautomotive.com.
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