Bloomfield Township-based Penske Automotive Group has acquired a majority stake in a heavy- and medium-duty truck dealership group, expected to contribute $600-$700 million in incremental estimated annualized revenue for the transportation services company.
The Around the Clock Freightliner Group, which operates 14 locations throughout Texas, Oklahoma, and New Mexico, is also expected to contribute $0.12 to $0.14 in estimated annual incremental earnings per share, say company officials.
“ATC represents a strategic opportunity for our company,” says Roger S. Penske, chairman of Penske Automotive Group, which now owns 91 percent of Around the Clock. “Like the automotive retail dealership business, the heavy-duty truck dealership industry is highly fragmented and provides an excellent opportunity for our company to build scale through further consolidation.”
Of Around the Clock’s locations, eight are full-service dealerships offering Freightliner, Western Star, and Sprinter-branded trucks. The company also sells a full range of used trucks and oversees service and parts departments that are open 24 hours a day, seven days a week.
Founded in 1990, Penske Automotive Group is the world’s second largest automotive dealership group. Prior to the most recent acquisition, the company operates 327 retail automotive franchises, representing 42 different brands and 26 collision repair centers.