Penske acquires Western Star Trucks Australia
International automotive retailer Penske Automotive Group has agreed to buy Western Star Trucks Australia, a distributor of commercial vehicles, related spare parts and aftermarket support.
Penske will enhance their global business profile by acquiring the company, which distributes across Australia and New Zealand and portions of Southeast Asia, from Transpacific Industries Group Limited.
Western Star primarily distributes heavy and medium-duty trucks for Western Star, MAN and Dennis Eagle through a network of over 80 independent dealers while serving customers across a number of industries, including on-highway, logistics, construction, mining, manufacturing, agricultural and waste/refuse collection.
Penske expects the total purchase price to be approximately $200 million.
Penske Automotive Group Chairman Roger S. Penske, said: “Western Star Trucks provides us with an attractive gateway to enhance our global business profile.
"Strong market dynamics, multiple growth options and one of the largest and well-established dealer networks in Australia and New Zealand enhance the business opportunity.
“We believe that our existing relationships with heavy and medium-duty truck manufacturers and our experience in operating distribution and dealership-related businesses provide us with a unique opportunity to expand our business while potentially providing a steppingstone to Southeast Asian markets for other parts of our business."
The Western Star truck brand, an affiliate of Daimler Trucks North America, is a top-three Australian heavy-duty truck brand and holds a leading position in key market segments. The MAN Truck and Bus brand is majority-owned by Volkswagen AG and is within the top-six suppliers to the Australian bus market.
Dennis Eagle is a growing brand within the specialist refuse collection vehicle market.