A little more than a month after announcing plans to acquire a standalone used-car store chain in the Northeastern U.S., Penske Automotive Group has done the same in the U.K.
Penske announced Friday that it has signed an agreement to buy CarShop, a chain of five standalone used-car retail stores in the U.K.
This follows a move announced Dec. 1, when Penske said it had signed a deal to buy CarSense, a standalone used-car retailer whose no-haggle model focuses on late-model units. CarSense has five stores throughout the Pittsburgh and Philadelphia metro areas, including southern New Jersey.
As for Friday's deal in the U.K, CarShop has locations in Cardiff, Swindon, Northampton, Norwich and Doncaster. The company, which launched in 1999, also has a 15-acre vehicle preparation center in Leighton Buzzard that can recondition 45,000 cars a year.
Penske Automotive Group chairman Roger Penske said in a news release: “The acquisition of CarShop furthers our diversification strategy within the transportation services industry, and is complementary to our existing core auto retail business.
“Similar to the U.S. market, used-vehicle sales in the U.K. are nearly three times the size of new vehicle sales on an annual basis. The CarShop acquisition, combined with the pending acquisition of CarSense in the United States, strengthens our market position in our two largest markets (United States and United Kingdom) while providing scalable future growth opportunities,” Penske added.
The deal must meet certain conditions and is expected to close by end of quarter. The dealer group estimates CarShop will generate annualized revenues of approximately $340 million, with accretion at an estimated $0.07 to $0.09 per share annually.