Penske Automotive Group, Inc.

Penske Automotive Group, Inc.

Penske Automotive Group, Inc.

Overview
Date Founded

1992

Headquarters

2555 TELEGRAPH ROAD, BLOOMFIELD HILLS, MI, 48302

Type of Company

Public

Employees (Worldwide)

27K

Industries

Retail: Other
Automobiles
Other Transportation
Consumer Services

Company Description

Penske Automotive Group, Inc. operates as an international transportation services company, which engages in the distribution of commercial vehicles, diesel engines, gas engines, power systems and related parts & services. It operates through the following segments: Retail Automotive, Retail Commercial Truck, Non-Automotive Investments and Other. The Retail Automotive segment consists of retail automotive dealership operations. The Retail Commercial Truck segment is the dealership operations of commercial trucks in the U.S. and Canada. The Other segment is comprised of commercial vehicle and power systems distribution operation and other non-automotive consolidated operations. The Non-Automotive Investments segment is the equity method investments in non-automotive operations. The company was founded in October 1992 and is headquartered in Bloomfield Hills, MI.

Contact Data
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Executives & Employees

Chairman & Chief Executive Officer

Executive Vice President & Chief Financial Officer

Executive Vice President, General Counsel & Secretary

Executive Vice President & Chief Information Officer

Chairman of the Sytner Group

President, Premier Truck Group

Managing Director of the Sytner Group

Executive Vice President-West Operations

Board of Directors

Founder at GTT Communications

Co-Founder at Charlesbank Capital Partners LLC

Senior Executive Vice President, Private Client Group & Regional Banking Director, Chair of Michigan at Huntington Bancshares, Inc.

Director at Penske Automotive Group, Inc.

President & Chief Executive Officer at Universal Technical Institute, Inc.

President at Penske Automotive Group, Inc.

Principal at Greg C. Smith LLC

Former Chairman & Chief Executive Officer at Bugatti Automobiles SAS

Former Chairman & Chief Executive Officer, Commercial Banking Group at Bank One Corp.

Former Chief Executive Officer at Papa Murphy's International LLC

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Penske Automotive Group, Inc.
Owners & Shareholders
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London Company offers multiple distinct investment strategies, all relatively concentrated with low annual turnover. Each strategy is created from the same, universal investment process. Their guiding principles for their investment philosophy include: focus on cash return on tangible capital, not earnings per share; the value of a company is determined by cash inflows and outflows discounted by the optimal cost of capital; and optimal diversification is essential to favorable investment results. The firm utilizes a differentiated conservative investment process focused on bottom up, fundamental analysis, utilizing a proprietary balance sheet optimization model and following a risk controlled sell discipline. They primarily seek the following characteristics: high return on capital, consistent free cash flow generation, predictability and stability, and conservative valuations. The firm screens for these primary characteristics and then the investment team will review and possibly seeks potential purchase candidates from the screen. The team will exercise further fundamental and qualitative analysis on selected candidates, in addition to estimating intrinsic values by performing an internal balance sheet optimization analysis, as well as adjusting to market other company assets that may provide further downside protection. The company's management, incentives, actions, capital allocation decisions and corporate governance structure to ascertain whether or not management's interests are aligned with shareholders are also evaluated by the investment team.

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BAM employs a value-focused global investment approach that seeks to preserve clients' capital while providing long-term superior investment returns. The firm offers investment strategies across many major asset classes, including but not limited to US large- and small/mid-cap, international, emerging markets and global equities. BAM employs a bottom-up investment approach, which focuses on strong business fundamentals and outstanding management teams and aims to reduce the inherent risk in investing. Their approach is designed to achieve lower volatility than the market averages. The firm's investment process is driven by limiting downside through a \"margin of safety\". They prefer to invest in companies that are capital rich, but which earn a high return on their financial capital. Companies that have a long history of good profitability, that generate high levels of free cash flow, are the basis of their investment style. BAM believes such businesses are the basis for most persistent long term outperformance in the capital markets, provided they are purchased at reasonable prices.

Details Hidden

Private Management group (PMG) reviews and may use investments other than traditional stock and bond instruments including preferred stock; convertible securities; hybrid securities; foreign securities; mutual funds or ETFs; US government securities or government sponsored entities; municipal securities; real estate or oil/gas limited partnerships; options or warrants; and other business ventures. They generally do not participate in IPOs, although they may consider them at any point. PMG typically invests in assets for the long-term (over six months). To a lesser degree, they may make short-term purchases.

Recent Transactions
Details Hidden

Penske Automotive Group, Inc. purchases The Around the Clock Freightliner Group LLC from WEC Energy Group, Inc.

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Penske Automotive Group, Inc. purchases The Car People Ltd.

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Steven Eagell Ltd. purchases Sytner Group Ltd. /Lexus Milton Keynes Dealership Business from Penske Automotive Group, Inc.

Insider Transactions
Details Hidden
Advisors & Consultants
Legal Advisor

Partner at Kirkland & Ellis LLP

Legal Advisor

Partner at Fried, Frank, Harris, Shriver & Jacobson LLP

Legal Advisor

Member (Attorney) at Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C.

Clients

United Natural Foods, Inc. engages in the distribution of natural, organic, and specialty foods and non-food products. It operates through the Wholesale and Other segment. The Wholesale segment distributes nutritional supplements, personal care items and organic products. The Others segment includes the sale other activities of the firm. It offers food and non food, frozen, perishables, bulk, body care products and supplements. The company was founded by Michael S. Funk in 1996 and is headquartered in Providence, RI.

Key Stats and Financials As of 2018
Market Capitalization
$3.65B
Total Enterprise Value
$9.43B
Earnings Per Share
$5.53
Revenue
$22.8B
EBITDAMargin
3.37%
Total Debt
$6.01B
Total Equity
$2.63B
Net Profit
$471M
Enterprise Value Sales
0.41x
Enterprise Value EBITDAOperating
12.27x
TEVNet Income
20.02x
Debt TEV
0.64x
EBITDA
$769M
Three Year Compounded Annual Growth Rate Of Revenue
5.72%
Five Year Compounded Annual Growth Rate Of Revenue
9.15%
Non-Profit Donations & Grants
$5,000 - $10K
2014
$10K - $25K
2013
$5,000 - $10K
2012
Investments
Details Hidden

The Around the Clock Freightliner Group LLC engages in the sale and service of heavy and medium duty trucks and parts. The firm specializes in the sale of medium and heavy duty used trucks. Its products and services include new and used trucks and related parts and services, such as repair, down draft paint, frame straightening, hunter axle alignment, wash and dry, buff and wax, paint touch-up, tank and wheel polishing, aluminum polishing, chrome polishing, engine and window cleaning, vacuuming, shampooing carpets and upholstery and tire and interior dressing. The company was founded by Charles K. Bowen in July 1977 and is headquartered in Oklahoma City, OK.

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Cycle Express LLC provides auction services in the powersports industry. It offers online tools, auction services, lender services, and dealer consignments. The company was founded by Cliff Clifford in 1990 and is headquartered in Poway, CA.

Details Hidden

RideCell, Inc. provides an intelligent software platform that empowers mobility operators, including OEMs, car rental companies, auto clubs, cities, transit agencies, dealer groups, and private fleets to launch, expand, and maximize the utilization of their own ridesharing, carsharing, and autonomous fleet services. The company was founded by Aarjav Trivedi, Steve Dickerson, and ArunKumar Elangovan in 2009 and is headquartered in San Francisco, CA.

Investors
Details Hidden

President, Chief Executive Officer & Chairman at Watson Enterprises Incorporated

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Founder at Car Sense, Inc.

Suppliers
General Motors Company Other Transportation | Detroit, Michigan

General Motors Co. engages in the designing, manufacturing, and selling of cars, trucks and automobile parts. It also provides automotive financing services through General Motors Financial Company, Inc. The firm operates through the following segments: GM North America, GM International, and GM Financial. It sells vehicles under the Chevrolet, Cadillac, Baojun, Buick, GMC, Holden, Jiefang, Wuling, Maven, and OnStar brands. The company was founded by William C. Durant on September 16, 1908 and is headquartered in Detroit, MI.

Honda Motor Co., Ltd. Industrial Machinery & Manufacturing | Tokyo, TY

Honda Motor Co., Ltd. engages in the manufacture and sale of automobiles, motorcycles, and power products. It operates through the following segments: Automobile, Motorcycle, Financial Services, and Power Product and Other Businesses. The Automobile segment manufactures and sells automobiles and related accessories. The Motorcycle segment handles all-terrain vehicles, motorcycle business, and related parts. The Financial Services segment provides financial and insurance services. The Power Product and Other Businesses segment offers power products and relevant parts. The company was founded by Soichiro Honda on September 24, 1948 and is headquartered in Tokyo, Japan.

Toyota Motor Corp. Computer Software | Toyota , AI

Toyota Motor Corp. engages in the manufacture and sale of motor vehicles and parts. It operates through the following segments: Automotive Operations, Financial Services, and All Other. The Automotive Operations segment designs, manufactures, assembles and sells passenger cars, minivans, trucks, and related vehicle parts and accessories. It is also involved in the development of intelligent transport systems. The Financial Services segment offers purchase or lease financing to Toyota vehicle dealers and customers. It also provides retail leasing through lease contracts purchase by dealers. The All Others segment deals with the design and manufacture and sale of housing, telecommunications and other businesses. The company was founded by Kiichiro Toyoda on August 28, 1937 and is headquartered in Toyota, Japan.

Competitors
Ford Motor Company Automobiles - DEARBORN , MI

Ford Motor Co. engages in the manufacture, distribution, and sale of automobiles. It operates through the following three segments: Automotive, Mobility, and Ford Credit. The Automotive segment engages in developing, manufacturing, marketing and servicing of Ford cars, Lincoln vehicles. The Mobility segment includes Ford Smart Mobility LLC and autonomous vehicles business. The Ford Credit segment comprises Ford Credit business on a consolidated basis, which is primarily vehicle-related financing and leasing activities. The company was founded by Henry Ford on June 16, 1903 and is headquartered in Dearborn, MI.

PACCAR, Inc. Trucks, Construction & Farm Machinery - Bellevue, WA

PACCAR, Inc. is a global technology company, which engages in the design and manufacture of light, medium, and heavy-duty trucks. It operates through the following segments: Truck, Parts, Financial Services, and Other. The Truck segment designs and manufactures heavy, medium, and light duty diesel trucks which are marketed under the Kenworth, Peterbilt, and DAF brands. The Parts segment distributes aftermarket parts for trucks and related commercial vehicles. The Financial Services segment provides finance and leasing products; and services provided to truck customers and dealers. The Other segment covers the manufacturing and marketing of industrial winches. The company was founded by William Pigott Sr. in 1905 and is headquartered in Bellevue, WA.

AB Volvo Trucks, Construction & Farm Machinery - Gothenburg, VG

Volvo AB engages in the design, manufacture, and market of commercial vehicles. It operates through the following segments: Trucks, Construction Equipment, Buses, Volvo Penta, Group Functions and Other, Industrial Operations, and Financial Services. The Trucks segment includes the production, development, and logistics for powertrain and parts. The Volvo Penta segment markets marine and industrial engines. The Group Functions and Other segment encompasses Volvo Group IT and Volvo Group Real Estate. The company was founded by Assar-Thorvald Nathanael-Gabrielsson and Erik Gustaf Larson in 1915 and is headquartered in Göteborg, Sweden.

Awards & Honors
Rank #143
2016
Fortune Magazine - Fortune 1000 Companies
Sponsored by Fortune Magazine
Rank #143
2016
Fortune Magazine - Fortune 500 Companies
Sponsored by Fortune Magazine
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