July 29, 2013 3:30 PM, EDT
Penske Automotive to Buy Australian Truck Dealership for $200 Million

Penske Automotive Group said it will buy an Australian truck distributor that sells a variety of truck brands for $200 million.

Penske expects the acquisition of Western Star Trucks Australia will generate about $420 million to $460 million in annual revenue. It anticipates acquisition costs of 2 cents per share in the third quarter.

Western Star Trucks Australia distributes heavy and medium-duty trucks for Western Star, MAN and garbage-truck manufacturer Dennis Eagle to a network of more than 80 independent dealers.

The MAN truck and bus brand is majority-owned by Volkswagen AG and is within the top-six suppliers to the Australian bus market, Penske said in a statement.

The deal, which Penske expects to complete by the end of September, “provides us with an attractive gateway to enhance our global business profile,” Penske Automotive Group Chairman Roger Penske said.

“We believe that our existing relationships with heavy and medium-duty truck manufacturers and our experience in operating distribution and dealership-related businesses provide us with a unique opportunity to expand our business while potentially providing a stepping stone to Southeast Asian markets for other parts of our business,” he said.