Penske Automotive Group Inc. has made another strategic acquisition, staying with premium luxury franchises, by buying New Jersey's Schneider + Nelson Auto Group in a deal expected to generate annual revenue of about $175 million.
Penske, the second-largest auto dealership group based in the U.S., has not acquired any Volkswagen stores this year, but it has added an Audi store with this deal and wants more.
"We only have two VW stores in the U.S.; it's not a brand that's a big player for us," said Tony Pordon, Penske's executive vice president of investor relations and corporate development.
"But we'll buy as many Audi stores as we can," he said, adding, "I see no reason why you wouldn't add an Audi dealership. It's an awesome brand."
Penske is adding add four stores, for a total of 263 dealerships.
The stores -- Audi Eatontown, Porsche Monmouth, Jaguar Monmouth and Land Rover Monmouth -- are in Monmouth County, N.J. The county, which has a population of around 630,000, is one of the wealthiest in the U.S.
The stores are expected to sell 2,400 new and used vehicles a year.
"The strong reputation and commitment to serving the customers of the New Jersey/Greater New York area for decades complement [Penske's] existing footprint in the northeastern United States, while enhancing our premium/luxury brand mix," Penske Automotive CEO Roger Penske said in a statement.
This is Penske Automotive's second franchised car dealership acquisition this year. In January, it bought a Land Rover dealership in Darien, Conn. The company expects that dealership to generate about $50 million of revenue annually.