Penske Automotive Group Inc. has acquired Mercedes-Benz of Greenwich for an undisclosed amount.
Chairman Roger Penske said the company has had its eye on the dealership for years. The company plans to overhaul the dealership and add a large Mercedes-Benz Autohaus facility and service center.
The dealership was bought from Arthur K. Watson III, who estimated the showroom brought in some $150 million in annual revenue. Watson bought the property and built the dealership in 1984. Though the amount Penske paid for the dealership was not disclosed, a Penske representative said the company is investing $15 million in the facilities.
The Michigan-based and publicly held Penske, which has its Connecticut offices in Fairfield, already owns Audi, Mercedes-Benz and Porsche of Fairfield, as well as Honda of Danbury.
The existing showroom at 261 W. Putnam Ave. will also be overhauled. The car dealership”™s showrooms for new and pre-owned vehicles have temporarily been moved to 217 W. Putnam Ave., a neighboring property included in the Penske acquisition. The 217 address will eventually be leveled to make way for the expanded 261 location, which will house the service center with 30 service bays and a parts department.
In addition to the Greenwich dealership, Penske also recently bought Crevier BMW and Mini in Santa Ana, Calif., bringing to seven its acquisition total for the year. This year”™s acquisitions are estimated to give the company an additional $525 million in annual revenue. Last year the company added $120 million in annual revenue through acquisitions, and in 2009 it added $100 million. Penske has 327 auto retail franchises nationwide.
The company”™s net income in the second quarter rose to $39.6 million, or 43 cents a share, compared with $29.4 million, or 32 cents a share, a year earlier. Revenue rose to $2.9 billion.
