Penske Automotive Group to Go Private in $16.3 Billion Deal With Penske Corp and Mitsui
Penske Automotive Group, Inc. (PAG) agreed to be taken private by its largest shareholders, Penske Corp and Mitsui & Co., Ltd. (8031), in a buyout valuing the company at approximately $16.3 billion including debt. Under the terms of the agreement, shareholders will receive $212 per share in cash, an 8.6% premium over the closing stock price on July 21 before the offer was disclosed.
The deal consolidates control between the auto retailer's major stakeholders. Penske Corp currently owns more than 52% of Penske Automotive Group, while Japan-based Mitsui owns over 20%. Once the privatization is completed, Penske Corp will own roughly 64% of the business, with Mitsui owning the remaining portion.
The transaction is slated to close in the first quarter of 2027. Penske Automotive shares gained over 8% in trading following the buyout announcement, aligning close to the $212 per share deal price.
Key points
- Penske Automotive Group agreed to a buyout valuing the business at roughly $16.3 billion including debt.
- Shareholders will receive $212 per share in cash, an 8.6% premium over the July 21 closing price.
- Existing investors Penske Corp and Mitsui will control 64% and 36% of the company after closing.
- The acquisition is expected to finalize in the first quarter of 2027.
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How we writeDisclaimerQuestions and answers
How much will shareholders receive in the Penske Automotive buyout?
Shareholders will receive $212 per share in cash, representing an 8.6% premium to the company's closing price on July 21, the day before the buyout proposal was disclosed.
Who will own Penske Automotive Group after it goes private?
After the buyout completes, major shareholders Penske Corp and Mitsui will own 100% of the company, with Penske Corp holding about 64% and Mitsui holding the rest.
When is the Penske Automotive privatization expected to close?
The transaction is expected to close in the first quarter of 2027.