Key facts
- Penske Corp and Mitsui offered $210 per share in cash to take Penske Automotive Group private.
- The offer values the auto dealership chain at $3.8 billion.
- Penske Corp owns over 52% of Penske Automotive Group, while Mitsui holds over 20%.
- Penske Automotive Group operates dealerships in the U.S., UK, Canada, Germany, Italy, and Japan.
- The company also retails commercial vehicles, engines, power systems, and related parts and services in Australia and New Zealand.
Penske Corp and its significant shareholder Mitsui have jointly proposed to acquire the remaining shares of auto retailer Penske Automotive Group for $3.8 billion, or $210 per share in cash. This move aims to take the publicly traded dealership chain private. Penske Automotive Group's stock saw a notable increase of over 11% following the announcement.
Penske Corp currently holds a controlling stake of over 52% in Penske Automotive Group, with Mitsui owning more than 20%. The company, which operates dealerships across the U.S., UK, Canada, Germany, Italy, and Japan, also engages in the retail of commercial vehicles and related services, primarily in Australia and New Zealand. Founded as United Automotive Group in 1990, it came under Penske Corp's control in 1999, with Mitsui making its initial investment in 2001. The company was renamed Penske Automotive Group in 2007.
Investors often find publicly traded auto dealership groups attractive due to their consistent service revenue streams and the ongoing consolidation within the industry.