Penske To Buy MTU Detroit Diesel Australia - Quick Facts

(RTTNews) - Penske Automotive Group Inc (PAG), a transportation services company, Monday agreed to acquire MTU Detroit Diesel Australia ("MTU-DDA"). MTU-DDA is a distributor of diesel and gas engines and power systems, operating across the on- and off-highway markets in Australia, New Zealand and the Pacific - including trucking, mining, power generation, construction, industrial, rail, marine, agriculture, oil & gas and defense.

The acquisition of MTU-DDA from the company's two primary distribution partners, Daimler AG and MTU Friedrichshafen (an affiliate of Rolls-Royce Power Systems) will bring added scale and complement Penske's existing Commercial Vehicle business ("PCV") operating in these markets. The financial terms of the deal were not disclosed.

MTU-DDA provides full parts and aftersales service support through a network of branches, field locations, and dealers across Australia, New Zealand and the Pacific. Coupled with PCV's existing heavy and medium-duty truck, bus and spare parts distribution, upon completion of the transaction the company will be able to provide a full range of products and services to customers across these regions.

MTU-DDA will continue to be a strategic distributor of Rolls-Royce Power Systems and Daimler in Australia, New Zealand and the Pacific.

Upon closing of the transaction, MTU-DDA is expected to contribute an estimated $225 million to $250 million in annualized revenue to Penske Automotive Group.

The transaction is subject to customary closing deliveries and is expected to be completed in the fourth quarter of 2014.