Penske Automotive Group, Inc., an international auto retailer headquartered in Bloomfield Hills, Michigan, has signed a pact to buy Rallye Motors situated on Long Island in the cities of Glen Cove, Roslyn and Westbury, New York. The company announced plans last Wednesday for its second Long Island dealership acquisition.
Rallye, a $700-million-a-year company, is famed for the manufacture of luxury brands and known for the opulence of its facilities. The company represents the Acura, BMW, Lexus and Mercedes-Benz brands, providing auto shoppers a wide array of premium vehicle choices. Think of Mercedes-Benz amenities, Lexus accessories, , and BMW upholstery. Those are just few slices of Rallye's lavishness.
Rallye also owns and operates a stand-alone, 52,000-square-foot collision center. The said center is part of the acquisition. Based on rankings by each brand, Rallye's Acura, BMW and Mercedes-Benz dealerships are currently listed in the top 20 of their respective brands' new unit sales in the United States.
The company was founded in 1958 by Terian's late husband, Peter, and a partner. Its 240 employees sell and service Acura, BMW, Lexus and Mercedes-Benz vehicles in Roslyn, Glen Cove and Westbury and also operate a collision center. Within each brand, Rallye's are among the top 20 dealerships in new vehicle sales, CNN divulged.
"Rallye Motors represents an opportunity to own and operate outstanding brands in the tremendous Long Island retail automotive market," said Penske Automotive Group President Roger S. Penske, Jr. "For over 45 years, Rallye Motors has focused on a commitment to customer service and loyalty. Once the acquisition is completed, these strong brands will further strengthen Penske Automotive's outstanding brand mix and will complement our existing operations in the New York metropolitan area."
Rallye franchises represent about $700 million in revenue on a yearly basis. The transaction is expected to close during the first quarter of next year and will be financed using cash flow from operations and availability under the company's American credit agreement. As mandated, closing of the sale transaction is subject to customary conditions, including due diligence and manufacturer approvals.
Penske operates 307 retail automotive franchises, representing 40 various brands, and 26 collision repair centers. The company, which sells new and previously owned vehicles, finance and insurance products and replacement parts, and offers maintenance and repair services on all brands it represents, has 162 franchises in 19 states and Puerto Rico and 145 franchises located outside the United States, primarily in the United Kingdom, reported Ad Hoc News. Currently, Penske is a member of the Fortune 500 and Russell 1000 and has 16,000 employees.
