December 1, 2016 — The Penske Automotive Group (PAG) announced today it has acquired specialty automotive retailer CarSense from owner and founder Francis I. McGowen.
CarSense has five locations in the Philadelphia and Pittsburgh markets specializeing in reconditioning and retailing high-quality, late-model used vehicles at no-haggle prices.
Penske says the acquisition should add an estimated $350 million in revenue with $0.07 to $0.09 per share. The group expects to scale the CarSense model nationally and believes the purchase will help it expand its share of the used vehicle market.
McGowen, who owned McGowen Lincoln Mercury Isuzu, Inc. in West Chester, PA, started CarSense in 1997 with Karl Kreutzberger. He later sold the Lincoln Mercury store in 2000 to focus on growing CarSense.
Other than the acquisition of an eight-store dealer group in Italy, CarSense is PAG’s only car dealership purchase this year.
PAG’s stock price is up $1.41 and reached its 12-month high this morning of $51.32. As recently as July, it was trading below $30 a share. It is the only public dealer group, including CarMax, whose stock price is trading higher than it was 12 months ago.