Haig Partners LLC, a leading buy-sell advisory firm for auto, heavy truck, and RV dealers in the U.S. recently acted as the exclusive sell-side advisor on the sale of River States Truck and Trailer (River States) to Premier Truck Group (PTG), a renowned international medium-duty and heavy-duty commercial truck dealership group owned by Penske Automotive Group, Inc. (NYSE:PAG). The acquisition is expected to contribute an estimated annualized revenue of $200 million to PTG, further enhancing its market position.
With impressive expertise and a strong track record in the automotive industry, Haig Partners played a vital role in facilitating the transaction between River States and PTG. Through their comprehensive understanding of the market dynamics, financial analysis, and negotiation skills, Haig Partners successfully advised and guided the parties involved in the sale. This acquisition is a strategic move by PTG to expand its operations and strengthen its presence in the commercial truck dealership sector.
Penske Automotive Group Inc, the parent company of PTG, has also been making significant strides in its own business performance. In the previous quarter, Penske Automotive Group Inc supplier revenues experienced a decline of 13.13% compared to the same quarter the previous year. Furthermore, sales fell by 5.5% from the previous quarter, posing a challenging scenario for the company. However, despite these setbacks, Penske Automotive Group Inc recorded a year-on-year increase in cost of sales by 1.89%. Sequentially, the cost of sales grew by 1.94% in Q1.
By joining forces with River States through the guidance of Haig Partners, Penske Automotive Group Inc aims to mitigate the impact of its recent decline in revenues and sales. The acquisition of River States Truck and Trailer is a strategic move that will not only diversify their revenue streams but also leverage the synergies between the two companies.
This acquisition also represents a significant opportunity for River States to expand its operations and leverage the resources and expertise offered by PTG. As part of the Penske Automotive Group Inc’s family, River States will gain access to a broader customer base, advanced technologies, and a robust network, positioning them for further growth and success.
The industry reeling from the effects of the global pandemic, this acquisition showcases the resilience and determination of both PTG and River States. Despite the challenges faced by the automotive industry, this deal demonstrates the confidence and commitment of these companies to adapt, explore new avenues of growth, and deliver value to their stakeholders and customers.
In conclusion, Haig Partners played an instrumental role as the exclusive sell-side advisor in the sale of River States Truck and Trailer to Premier Truck Group. This acquisition will add an estimated $200 million of annualized revenue to PTG, bolstering its position in the commercial truck dealership market. Additionally, this strategic move by PTG aims to counter its recent decline in revenues and sales, while offering growth opportunities to River States. This deal signifies the resilience and determination of these companies in navigating the challenges faced by the automotive industry.
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