Penske Automotive to acquire Don Allen Auto Service for $12.34M

According to a regulatory filing, on December 22, 2023, Penske Automotive Group entered into a Stock Purchase Agreemen with Penske Investments Limited Partnership, a Nevada partnership owned by entities affiliated with our Chair and Chief Executive Officer Roger S. Penske, to acquire all of the issued and outstanding capital stock of Don Allen Auto Service, Inc., a Massachusetts corporation, for a purchase price of $12,340,000 in cash, subject to certain adjustments. The Dealership Entity owns Don Allen Ford Nantucket and Don Allen Chrysler Dodge Jeep Ram located in Nantucket, MA, as well as associated real property. Under the terms of the Purchase Agreement, the Purchase Price may be increased or decreased after the closing based on the finally determined net worth of the Dealership Entity as of the closing date compared to a net worth target based on the Dealership Entity’s historical assets and liabilities. The Company has retained a $650,000 holdback from the Purchase Price to account for potential adjustments to the Purchase Price. The closing of the transactions contemplated by the Purchase Agreement is subject to customary conditions, including (i) receipt of approval of the transactions by certain automotive manufacturers, (ii) receipt of certain governmental approvals and licenses and (iii) the absence of a material adverse change affecting the Dealerships or the Dealership Entity’s real property. The Purchase Agreement also contains certain termination rights of both the Company and PILP. The company expects to close on the transactions contemplated by the Purchase Agreement in the first quarter of 2024.