US auto giant, Penske Automotive Group, has completed the acquisition of Australia’s Commercial Vehicles Group (CVG) from Transpacific Industries Group Limited, making its official entry into the Australasian vehicle market.
DIESELtalk reported last month that Penske was set to make its entrance into Australia and New Zealand automotive, with its intention to acquire the Commercial Vehicle Group, distributors of Western Star, MAN Truck & Bus and Dennis Eagle.
The final purchase price of $200 million (NZD $245m) included working capital of approximately $67 million inclusive of vehicle inventory, parts, and other assets – with the acquisition financed using available cash-flow and the company’s credit and floorplan financing facilities.
The new Australian business unit is expected to produce between USD $420 and $460 million (NZD $514 -$563m) in revenue annually for Penske Automotive Group.
Penske Automotive Group chairman Roger S. Penske says: “We are extremely pleased to complete this acquisition so quickly and we believe our existing relationships with heavy and medium-duty truck manufacturers – coupled with our experience in operating distribution and dealership-related businesses – will enhance this business opportunity.”
Referring to further market penetration, Penske says: “The acquisition of the Commercial Vehicle Group clearly provides us with an attractive gateway to develop our global business and provide a stepping-stone to southeast Asian markets for other parts of our business.”
