Penske Automotive Group (NYSE: PAG) announced that it will acquire Lexus of Orlando and Lexus of Winter Park, two premium‑brand dealerships located in the Orlando metropolitan area. The transaction is expected to add $450 million in annualized revenue to PAG’s retail automotive portfolio and is slated to close in the first quarter of 2026, subject to customary closing conditions.
The acquisition comes as PAG reported a 1.4% increase in revenue to $7.7 billion in its most recent quarter, while net income and earnings per share fell 6% and 5% respectively. Adding $450 million in annualized revenue represents roughly 1.5% of PAG’s $30.68 billion in current annual revenue and reinforces the company’s focus on high‑margin, premium‑brand dealerships, which already account for 74% of its worldwide automotive dealership revenue and 86% of total retail automotive revenue.
Florida’s rapid population and economic growth make it an attractive market for premium vehicle sales. Rich Shearing, North American Operations Officer, said the deal “expands the Company’s scale in one of the fastest‑growing states in the country while leveraging the Company’s existing infrastructure in Central Florida.” The acquisition aligns with PAG’s strategy of adding premium brands to its diversified platform and follows recent purchases in California and Texas that added approximately $1.5 billion in expected annualized revenue.
By consolidating operations in Central Florida, PAG expects to achieve operational synergies and strengthen its service and parts mix, which historically drives higher margins in the premium segment. The deal also positions the company to capture a larger share of the region’s luxury‑vehicle market, supporting long‑term revenue growth and reinforcing PAG’s competitive advantage in high‑margin dealership operations.
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