Penske Automotive Buys Penske Truck Leasing Stake
BLOOMFIELD HILLS, MI – Auto retailer Penske Automotive Group Inc. bought a nine-percent limited partnership interest in Penske Truck Leasing Co. LP from GE Capital for $219 million, according to Forbes. Penske Truck Leasing is a joint venture between privately held Penske Corp. and GE Capital, and it manages Penske Automotive's 24-hour roadside assistance program. Transportation and racing magnate Roger Penske is CEO of both Penske Automotive Group and Penske Corp.
Penske Automotive expects the deal to add two to four cents per share to its 2008 earnings, and anticipates updating its third-quarter and 2008 outlook during its second-quarter earnings conference call at the end of July. The company financed the deal with borrowings from its U.S. credit agreement, which was expanded due to the deal and now includes an additional $219 million in non-amortizing term loans.