Penske Completes $200 Million Purchase of Australian Truck Dealership Group

Penske Automotive Group said Aug. 30 it has completed its $200 million purchase of Australian truck distributor that sells a variety of truck brands.

Penske, which first announced the deal in late July, said it 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.

“We are extremely pleased to complete this acquisition in such an efficient time frame,” Penske Chairman Roger Penske said in a statement. The deal “provides us with an attractive gateway to enhance our global business profile while potentially providing a steppingstone to Southeast Asian markets for other parts of our business,” he said.

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.