Penske to Acquire Australia & New Zealand Vehicle Distributor
Automotive retailer Penske Automotive Group, Inc., announced that it has signed an agreement to acquire a distributor of commercial vehicles, related spare parts and aftermarket support across Australia and New Zealand and portions of Southeast Asia from Transpacific Industries Group Limited.
The business to be acquired, Western Star Trucks Australia, primarily distributes heavy and medium-duty trucks for Western Star, MAN, and Dennis Eagle through a network of over 80 independent dealers while serving customers across a number of industries, including on-highway, logistics, construction, mining, manufacturing, agricultural and waste/refuse collection.
The Western Star truck brand, an affiliate of Daimler Trucks North America, is a top-three Australian heavy-duty truck brand and holds a leading position in key market segments, according to Penske. The MAN Truck and Bus brand is majority-owned by Volkswagen AG and is within the top-six suppliers to the Australian bus market. Dennis Eagle is a growing brand within the specialist refuse collection vehicle market.
Closing of the transaction is expected to occur in the third quarter of 2013. Including vehicle inventory, parts, assets and goodwill, the company expects the total purchase price to be approximately $200 million, which will be financed using available cash flow from operations and availability under the company's credit and floorplan financing facilities. The transaction is subject to specified closing conditions, including OEM approval.