Penske Automotive Group Inc. in Bloomfield Township has entered into an agreement to acquire Kansas City Freightliner, a retailer of medium and heavy-duty commercial trucks in Kansas City, Mo.
The KCFL acquisition is expected to generate $450 million in annualized revenue, and is expected to build further scale within the Penske Automotive’s wholly owned Premier Truck Group subsidiary.
Dallas-based Premier Truck Group currently operates 25 North American commercial truck dealerships located in Texas, Oklahoma, Tennessee, Georgia, Utah, Idaho, and Ontario, Canada, which collectively generate more than $2 billion in annual revenue.
KCFL will add five full-service dealerships, four parts and service centers, and two collision centers located in Kansas and Missouri to its existing operations.
“We are thrilled to welcome Kansas City Freightliner to Premier Truck Group,” says Richard Shearing, president of Premier Truck Group. “With its contiguous operating area to existing Premier Truck Group markets, KCFL is a natural extension of our existing business as we can offer an expanded service area to both our customer base and KCFL’s existing customers.
“Upon completion of this transaction, Premier Truck Group is expected to generate nearly 20,000 new and used unit sales annually, and is expected to generate annual revenue of approximately $2.5 billion.”
Closing of the transaction is expected during the second quarter of 2021, and is subject to customary closing conditions.
Penske Automotive Group operates automotive and commercial truck dealerships principally in the United States, the United Kingdom, Canada, and Western Europe. It also distributes commercial vehicles, diesel engines, gas engines, power systems, and related parts and services principally in Australia and New Zealand.
Premier Truck Group offers new Freightliner and Western Star commercial vehicles as well as a large selection of used truck and full-service parts and service operations.