The upcoming acquisition of Long Island's Rallye Motors will help Penske Automotive Group, Inc. break into the area's retail automotive market. The company, an international automotive retailer, recently signed an agreement to purchase Rallye Motors, which is located in the cities of Glen Cove, Roslyn and Westbury, New York. Rallye Motors represents the Acura, BMW, Lexus and Mercedes-Benz brands, and provides customers an with array of premium vehicle choices. Rallye also owns and operates a stand-alone, 52,000-square-foot collision center, which is part of the acquisition. Based on rankings by each brand, Rallye's Acura, BMW and Mercedes-Benz dealerships are currently listed in the top 20 of their respective brands' new unit sales in the United States. "Rallye Motors represents an opportunity to own and operate outstanding brands in the Long Island market," says Penske Automotive Group President Roger S. Penske, Jr. "For over 45 years, Rallye Motors has focused on a commitment to customer service and loyalty. Once the acquisition is completed, these strong brands will further strengthen Penske Automotive's outstanding brand mix and will complement our existing operations in the New York metropolitan area." The Rallye Motors' franchises represent approximately $700 million in revenue on an annualized basis. The transaction is expected to close during the first quarter of 2008 and will be financed using cash flow from operations and availability under the company's U.S. credit agreement. Closing of the transaction is subject to customary conditions, including due diligence and manufacturer approvals. For more information on Penske Automotive Group, Inc., visit the company's Web site. |
