Penske Automotive Group reports Q3 ahead of take-private deal - WardsAuto
By Google News Motors ·
The dealer group saw revenues rise and profits fall year over year, but skipped the usual earnings call with investors as it awaits regulatory approval for the transaction to take it private.
Penske Automotive Group’s Q3 earnings results were mostly in line with auto retail industry trends, including higher overall revenue for its retail automotive segment and an increase in service and parts gross profit.
What’s different is that the Oct. 28 announcement was probably one of the chain’s last earnings reports as a publicly traded company.
That’s because parent company Penske Corp. and minority shareholder Mitsui & Co. Ltd. plan to buy the rest of Penske Automotive Group and take it private. That proposed transaction for $3.9 billion worth of stock is expected to close in the first quarter of 2027, pending shareholder and regulatory approval.
The buyers are already Penske Automotive Group’s biggest shareholders, by far. Before the transaction, Chairman Roger Penske, Penske Corp., and its Penske Automotive Holdings Corp., together owned about 52% of the dealership group, based in Bloomfield Hills, Michigan.
Tokyo-based Mitsui & Co. and its U.S. subsidiary, Mitsui & Co. (U.S.A.), between them owned another 20.3% of Penske Automotive Group before the deal, according to Mitsui’s announcement of the proposed transaction.
The proposed transaction is for the 27.8% of Penske Automotive Group the partners didn’t already own. After the transaction, Penske would own about 64%, and Mitsui 36%. The value of the buyout implies a $16.3 billion valuation for Penske Automotive Group as a whole.
The proposed deal to take the group private was first announced on July 22. A special committee of independent Penske Automotive Group board members later said it had endorsed the offer, in…
Originally published by Google News Motors
