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Penske ties up Commercial Vehicle Group purchase


kscarbel
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Australian Transport News / September 2, 2013

US vehicle retailer Penske has completed the purchase of Commercial Vehicle Group (CVG) and has confirmed the existing management will stay in place.

Penske spent $219 million on the deal with Transpacific Industries for its heavy vehicle sales and support business, it was revealed in July.

CVG distributes heavy and medium-duty trucks for Western Star, MAN Truck and Bus, and Dennis Eagle refuse chassis through a network of over 80 independent dealers, and for the price Penske gains “target working capital of approximately $67 million inclusive of vehicle inventory, parts, and other assets”.

The new owner expects to gain $420-$460 million in annual revenues from its first Australian acquisition.

“We believe that our existing relationships with heavy and medium-duty truck manufacturers, our experience in operating distribution and dealership-related businesses, strong market dynamics and multiple growth options augment this business opportunity,” Penske Automotive Group Chairman Roger S. Penske says.

“Further, The Commercial Vehicle Group provides us with an attractive gateway to enhance our global business profile while potentially providing a stepping-stone to Southeast Asian markets for other parts of our business."

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