Bloomfield Township-based Penske Automotive Group, an international transportation service provider and leading retailer of vehicles, today announced a signed agreement to acquire The Car People, a fixed-price used vehicle retailer in the United Kingdom.
Established in 2000, The Car People has large-scale retail locations in Wakefield, Sheffield, Manchester, and Warrington.
“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,” says Roger S. Penske, Penske Automotive’s group chairman.
“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.”
The news follows Penske Automotive’s acquisition of another U.K.-based used car retailer, The CarShop, in Feb. 2016.
The acquisition of The Car People is subject to customary conditions and is expected to close in the first quarter of 2018. The company sells approximately 18,000 vehicles annually and is expected to generate annualized revenue of approximately $300 million (U.S.). Estimated accretion is expected to be between $.05-.07 per share on annualized basis.