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Penske Automotive Acquires 4 Dealerships in New Jersey

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Penske Automotive Group, Inc.PAG announced the acquisition of Audi Eatontown, Porsche Monmouth, Jaguar Monmouth and Land Rover Monmouth in Monmouth County, NJ, from the Schneider Nelson Auto Group. These four franchises are expected to record annual sales of around 2,400 new and used vehicles. Annual revenues from these dealerships are anticipated to be around $175 million. The acquisition will enhance the company's premium/luxury brand mix.

Penske Automotive aims to boost earnings by expanding its dealership network. In 2014, the company acquired eight automotive franchises, which are expected to generate annual revenues of $275 million. In Jan 2015, Penske Automotive acquired a Land Rover dealership in Darien, CT, which is anticipated to generate annual revenues of $50 million.

In Feb 2015, the company completed the acquisition of Freightliner medium- and heavy-duty commercial truck dealerships operating in the Chattanooga and Knoxville, TN markets. With this, the company expanded its commercial truck dealership footprint in these new markets. These dealerships are expected to add annual revenues of $200 million.

The company believes that there are further acquisition opportunities for its retail commercial vehicle dealership operations in the U.S. and commercial vehicle distribution operations in Australia.

Zacks Rank

Penske Automotive currently has a Zacks Rank #3 (Hold). Better-ranked automobile stocks include General Motors Co. GM , O'Reilly Automotive Inc. ORLY and Fox Factory Holding Corp FOXF . All these stocks carry a Zacks Rank #2 (Buy).

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PENSKE AUTO GRP (PAG): Free Stock Analysis Report

O REILLY AUTO (ORLY): Free Stock Analysis Report

GENERAL MOTORS (GM): Free Stock Analysis Report

FOX FACTORY HLD (FOXF): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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