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Penske Automotive agrees to buy The Car People

Published 14 December 2017

Penske Automotive Group has agreed to acquire The Car People, a UK-based retailer of used vehicles.

The Car People retails high-quality used vehicles at fixed retail prices as part of a transparent customer buying experience. 

Established in 2000, The Car People has four large-scale retail locations operating in Wakefield, Sheffield, Manchester and Warrington.

Commenting on the transaction, Penske Automotive Group Chairman Roger S. Penske said, "I am excited to be joining forces with the team at The Car People, a great business that operates under a similar model to our own. The acquisition of The Car People strengthens the company's market position in our second largest market, almost doubles the size of our U.K.-based Used Car Supermarket business, and continues to further our diversification strategy within the transportation services industry."

Darren Edwards, CEO of Penske Automotive Group's U.K. operations said, "The acquisition of The Car People enables us to accelerate the expansion of our Used Car Supermarket Division and reinforces our commitment to significantly grow our used car business.  Combined with the acquisition of CarShop earlier this year, this new acquisition will provide for potential significant operational synergies within this part of our business."

The acquisition is subject to customary conditions and is expected to close in the first quarter 2018.  The Car People sells approximately 18,000 vehicles per year and is expected to generate estimated annualized revenue of approximately $300 million.  Estimated accretion is expected to be between $0.05 to $0.07 per share on an annualized basis.  

Source: Company Press Release