Penske finalizes purchase of UK used-car retailer

December screenshot from TheCarPeople.Co.UK.

Penske Automotive Group said Wednesday it has closed its purchase of U.K.-based used-car retailer The Car People.

The acquisition was first announced Dec. 12.

“I am delighted to welcome The Car People team to Penske Automotive Group,” Company chairman Roger Penske said in a news release.“The acquisition of The Car People accelerates the company's expansion of its Used Car Supermarket business and reinforces our commitment to grow the used car business while strengthening the company's market position in the U.K., our second largest market."

Penske Automotive anticipates its Used Car Supermarket businesses in the U.K. to sell a grand total of 55,000- cars a year.

The Car People is a used-car retailer with four large-scale locations that sell a combined total of approximately 18,000 units per year.

It launched in 2000 and has stores in Wakefield, Sheffield, Manchester and Warrington, Penske said.

The dealer group estimates The Car People will bring in about $300 million in annualized revenue, and estimates annualized accretion from the deal at $0.05 to $0.07 per share. 

This follows a similar move Penske made in January 2017, when it announced an agreement to buy CarShop, a U.K. chain of five standalone used-car retail stores. That acquisition was completed in February.

Stateside, Penske announced a deal in December 2016 to buy U.S.-based used-car retailer CarSense, closing that acquisition in January 2017.

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