DETROIT -- The planned acquisition of New York dealership group Rallye Motors by Penske Automotive Group Inc. has been terminated, Rallye said today.
Upon further evaluation, we mutually agreed with Penske Automotive to terminate the proposed transaction, Rallye Motors Chairman Juliana Terian said in the statement. Our business is performing very well, and we have a number of near-term initiatives that will enhance our ability to provide unparalleled service and quality to our clients.
The deal would have included Rallye dealerships in Glen Cove, Roslyn and Westbury, N.Y., representing Acura, BMW, Lexus and Mercedes-Benz brands and a 52,000-square-foot collision center. The deal represented about $700 million in annual revenue, Penske Automotive said in a statement.
The deal was expected to close in the first quarter of 2008, Penske said.
Penske Automotive, which is based in suburban Detroit, ranks No. 2 on the Automotive News list of the top 125 dealership groups in the United States, with new retail vehicle sales of 183,370 units in 2006.