NEW YORK – Automotive retailer Penske Automotive Group Inc. said it agreed to acquire Rallye Motors for an undisclosed sum, according to the Web site

Rallye Motors, located in three cities on New York's Long Island, represents the Acura, BMW, Lexus and Mercedes-Benz brands. The deal also includes Rallye's stand-alone collision center.

Penske said the acquisition will strengthen its brand mix and complement its existing operations in the New York metropolitan area, according to the Web site

The Rallye franchises represent about $700 million in revenue on an annualized basis, Penske said.

The deal is expected to close during the first quarter of 2008 and will be financed with cash flow from operations and availability under Penske's U.S. credit agreement, Penske said.

Originally posted on Fleet Financials