Penske Automotive reaches deal to go private

Roughly three months after receiving an offer from an investor group, Penske Automotive Group is officially going private.

The dealer group said Thursday it has entered into a merger agreement to be taken private by Motown Acquisition Corp., an entity owned by Penske Corporation and Mitsui & Co, Ltd. – the retailer’s largest stakeholders.

Penske Automotive common stock shareholders — outside of Penske Corp., Mitsui and other members of the investor group — would receive $212 per share in cash.

This valuates Penske Automotive at $16.3 billion.

Once the transaction is complete, Penske Corp. would own 64% of the dealer group and Mitsui would own 36%.

A special committee of independent and disinterested directors of Penkse Automotive’s board unanimously recommended approval of the deal.

The transaction is expected to close in the first quarter of next year. Once it closes, Penske Automotive’s shares will no longer be traded on the New York Stock Exchange.

“We are pleased to have reached this agreement with Penske and Mitsui, our largest shareholders,” said David Hoogendoorn, Penske Automotive Group board member and the Special Committee Chair.

“The Special Committee thoroughly reviewed the proposal and considered the benefits of the transaction as compared to continuing as a public company, and determined that this transaction provided the greatest value for the Company’s minority shareholders.”

Penske Automotive chair and CEO Roger Penske said: “I want to thank the Special Committee for its thoughtful and diligent evaluation of the transaction. This transaction marks an important next chapter for PAG. Mitsui has been a shareholder for 25 years, and we have had a productive relationship over the past quarter-century. Together with Mitsui, we will build on PAG’s operational excellence and draw on our combined capabilities and networks to drive innovation and expand PAG’s business through new opportunities and collaborative projects.”

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