Transport provider Penske Automotive Group has signed an agreement to acquire MTU Detroit Diesel Australia (MTU-DDA) from its partners Daimler and MTU Friedrichshafen (an affiliate of Rolls-Royce Power Systems). MTU-DDA distributes diesel and gas engines, and power systems, in Australia, New Zealand and the Pacific, to a range of industries including trucking, mining, power generation, construction, industrial, rail and agriculture, amongst others. The company did not provide a figure on the acquisition but MTU-DDA is expected to contribute an estimated $225m to $250m in annual revenue to Penske Automotive Group.
Penske said the purchase would bring added scale and complement its existing commercial vehicle business (PCV) in the markets covered. MTU-DDA provides full parts and aftersales service support through a network of branches, field locations, and dealers across Australia, New Zealand and the Pacific.
"MTU Detroit Diesel Australia represents some of the most innovative and well-respected brands in the industry, including MTU, Detroit Diesel, Mercedes-Benz Industrial, Allison Transmission and MTU Onsite Energy,” said Penske Automotive’s chairman, Roger Penske. “As we considered opportunities to grow and enhance our business in Australia, New Zealand and the Pacific, coupling engine and power systems with our existing Western Star, MAN Truck and Bus and Dennis Eagle truck distribution business provided an opportunity to scale our existing operations in an efficient manner."
Coupled with PCV's existing heavy and medium-duty truck, bus and spare parts distribution, once the deal is complete – something expected by the fourth quarter this year – the company will be able to provide a full range of products and services to customers across these regions.
MTU-DDA will continue distribute for Rolls-Royce Power Systems and Daimler in Australia, New Zealand and the Pacific.
Rolls-Royce Power Systems’ chief sales officer, Dr. Michael Haidinger said: "Through our strategic partnership with MTU-DDA and Penske, our regional customers will be offered a world-class system and sales experience reinforcing our presence in these important markets with a trusted, experienced and world-class distribution partner."