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Penske Automotive Acquires Jaguar, Land Rover Dealerships

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Penske Automotive Group, Inc. (PAG - Free Report) recently announced that it has acquired Jaguar and Land Rover dealerships in Paramus, NJ from the Prestige Family of Fine Cars. The acquisition has enabled the company to further expand in the region and is expected to generate annual revenue of around $215 million.

This new acquisition will increase the company’s existing portfolio. Thus, Penske Automotive now has five Jaguar/Land Rover dealerships in the U.S.

In 2016, Penske Automotive acquired or opened new dealerships which are likely to generate annual revenue of $700 million.

In Jan 2017, the company completed the CarSense acquisition that was announced in Dec 2016. The company expects this buyout to drive annual revenue of around $350 million along with earnings accretion of around 7 cents to 9 cents per share annually. Penske Automotive expects this buyout to diversify its business and expand its customer base. It will also help the company capitalize on the highly fragmented used automotive retail segment.

In Jan 2017, Penske Automotive signed a deal to acquire the leading retailer of used vehicles in the U.K. – CarShop. The company expects CarShop to generate annual revenue of around $340 million along with earnings accretion of roughly 7 cents to 9 cents per share annually. The acquisition is expected to close in the first quarter of 2017, subject to certain conditions.

Penske Automotive Group, Inc. Price

Price Performance

In the last three months, Penske Automotive’s share price decreased 8.4% while the Zacks categorized Retail/Wholesale Auto/Truck industry experienced a 4.9% fall. Intense Competition and in foreign currency fluctuations impacted the share price adversely.




Zacks Rank & Key Picks

Penske Automotive currently carries a Zacks Rank #3 (Hold).

Better-ranked companies in the auto space include Lear Corporation (LEA - Free Report) , American Axle & Manufacturing Holdings, Inc. (AXL - Free Report) and General Motors Co. (GM - Free Report) . All the three stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

For the current year, Lear Corporation, American Axle and General Motors expect earnings growth of around 8.9%, 8.1% and 9.4%, respectively.

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