Mitsui Acquired an Additional Equity Interest in North America-based Penske Truck Leasing Co., L.P.

LONDON--()--

This announcement is for our U.S.$5,000,000,000 Euro Medium Term Note Programme.

September 8, 2017

Company name: Mitsui & Co., Ltd.
President and CEO: Tatsuo Yasunaga
Stock code: 8031
Head office: 1-1-3 Marunouchi,
Chioyoda-ku,
Tokyo

Mitsui acquired an additional equity interest in North America-based Penske Truck Leasing Co., L.P.

Mitsui & Co., Ltd. (“Mitsui”) has agreed to acquire an additional Limited Partnership (“LP”) interest in Penske Truck Leasing Co., L.P. (“PTL”), a full-service truck leasing, rental and logistics business (“Business”) that operates mainly in the United States, and executed the relevant transaction documents on September 7, 2017 (U.S. time). 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.

Outline of PTL

Name Penske Truck Leasing Co., L.P.
HQ location Pennsylvania, USA
Established 1969
Representative Brian Hard, President and CEO
Business outline Truck leasing, rental, and logistics businesses
Website

http://www.GoPenske.com

Outline of PAG (NYSE ticker: PAG)

Name Penske Automotive Group, Inc.
HQ location Michigan, USA
Established 1990
Business outline International transportation services businesses (mainly automotive retail)
Website

http://www.penskeautomotive.com/

A PTL truck A typical PTL branch location

Investor Relations Division Corporate Communications Division
Telephone: +81-3-3285-7910 Telephone: +81-3-3285-7618

Notice:

This announcement contains forward-looking statements. These forward-looking statements are based on Mitsui's current assumptions, expectations and beliefs in light of the information currently possessed by it and involve known and unknown risks, uncertainties and other factors. Such risks, uncertainties and other factors may cause Mitsui's actual results, financial position or cash flows to be materially different from any future results, financial position or cash flows expressed or implied by these forward-looking statements. These risks, uncertainties and other factors referred to above include, but are not limited to, those contained in Mitsui's latest Annual Securities Report and Quarterly Securities Report, and Mitsui undertakes no obligation to publicly update or revise any forward-looking statements.

This announcement is published in order to publicly announce specific facts stated above, and does not constitute a solicitation of investments or any similar act inside or outside of Japan, regarding the shares, bonds or other securities issued by us.

For diagrams omitted, please see our home page.
(http://www.mitsui.com/jp/en/release/2017/1224463_10832.html)

Short Name: Mitsui & Co., Ltd.
Category Code: MSCU
Sequence Number: 630157
Time of Receipt (offset from UTC): 20170908T023330+0100

Contacts

Mitsui & Co Ltd

Contacts

Mitsui & Co Ltd