Penske Automotive Buys Stake in Truck-Leasing Venture

Penske Automotive Group bought a 9% stake in Penske Truck Leasing Co. from a General Electric Co. unit for $219 million, Bloomberg reported.

The purchase from GE Capital will add 2 to 4 cents a share to 2008 earnings, the Bloomfield Hills, Michigan-based auto retailer said in a statement.

The truck-leasing company is a joint venture between the GE unit and closely held Penske Corp., the biggest shareholder of Penske Automotive, Bloomberg said.

“We anticipate significant cash flow from partnership operating distributions and U.S. tax savings over the next three to five years to recoup a substantial portion of our investment,” Roger Penske, chief executive officer of the auto retailer, said in the statement.

Penske Truck Leasing is ranked No. 7 on the Transport Topics 100 listing of U.S. and Canadian for-hire carriers.