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Mitsui buys limited partnership interest in Penske Truck Leasing

Published 08 September 2017

Mitsui has acquired an additional limited partnership (LP) interest in Penske Truck Leasing ("PTL"), a US-based full-service truck leasing, rental and logistics business.

Prior to this transaction, Mitsui has owned a 20% LP interest in PTL.

Through its investment special purpose company, Mitsui has acquired the additional 10% LP interest in PTL from two holding companies under GE Capital Global Holdings, LLC ("GEC") for an amount of approximately USD 435 million (JPY 48 billion). Simultaneously, Penske Automotive Group, Inc. ("PAG"), which is a 23.4% LP interest holder in PTL, has also acquired an additional 5.5% LP interest in PTL from the same two holding companies under GEC. Mitsui owns 18.1% of the shares of PAG. Following this transaction, Penske Corporation ("Penske") and PAG will own 70%, and Mitsui will own 30%, of the partnership interests in PTL.

PTL manages one of the leading full-service truck leasing, truck rental and contract maintenance businesses mainly in North America. PTL operates and maintains a fleet more than 250,000 vehicles in North America and Australia. PTL, through its subsidiary Penske Logistics, also operates an international logistics business in North America, South America, Europe, and Asia.

Mitsui has long been a strategic investor in PAG, an international transportation services company. PAG is controlled by Penske. Since its initial investment in PAG in 2001, Mitsui has developed and strengthened its partnership with Penske. Subsequently, in 2015, Mitsui had the opportunity to acquire an LP interest in PTL, also controlled by Penske. Since then, Mitsui has taken many initiatives to contribute to the growth of PTL.

In the United States, where PTL has its largest business footprint, sustainable population growth and the incremental cargo transportation which flows from such population growth are expected. Along with the increasing requirement for high technology equipment that can meet stringent safety regulations, the demand for truck leasing has steadily grown in recent years. Considering such market trends, and also considering PTL's strong growth potential that Mitsui has actually confirmed via its previous investment in PTL, Mitsui has decided to acquire the additional interest in PTL.

Mobility is one of the key growth areas defined in Mitsui's medium-term management plan announced in May of this year. Mitsui seeks to fully take advantage of its diverse business footprints and become the solution provider of fleet management and supply chain efficiency via PTL's vast capabilities.

Source: Company Press Release