Penske Automotive Group, Inc. (NYSE:PAG), an international automotive retailer, said today that it and Rallye Motors have mutually agreed to terminate the previously announced agreement to acquire Rallye Motors by Penske Automotive Group.
Previously, Penske Automotive Group announced that it had signed an agreement to acquire Rallye Motors representing approximately $700 million in annualized revenue, subject to customary conditions. The expected closing date of this transaction was anticipated to be in the first quarter of 2008.
Penske Automotive Group has completed acquisitions in 2007 that are expected to generate approximately $450 million in gross annualized revenue and will provide guidance as to the level of anticipated 2008 acquisitions in connection with the announcement of its fourth quarter results.
Penske Automotive Group, Inc., headquartered in Bloomfield Hills, Michigan, operates 305 retail automotive franchises, representing 40 different brands, and 26 collision repair centers. Penske Automotive, which sells new and previously owned vehicles, finance and insurance products and replacement parts, and offers maintenance and repair services on all brands it represents, has 160 franchises in 18 states and Puerto Rico and 145 franchises located outside the United States, primarily in the United Kingdom. Penske Automotive is a member of the Fortune 500 and Russell 1000 and has 16,000 employees.
Statements in this press release may involve forward-looking statements, including forward-looking statements regarding Penske Automotive Group, Inc. future sales potential. Actual results may vary materially because of risks and uncertainties, including satisfaction of closing conditions and external factors such as interest rate fluctuations, changes in consumer spending and other factors over which management has no control. These forward-looking statements should be evaluated together with additional information about Penske Automotive’s business, markets, conditions and other uncertainties, which could affect Penske Automotive’s future performance, which are contained in Penske Automotive’s Form 10-K for the year ended December 31, 2006, and its other filings with the Securities and Exchange Commission and which are incorporated into this press release by reference. This press release speaks only as of its date, and Penske Automotive disclaims any duty to update the information herein.