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Business Combinations
 9 Months Ended
Sep. 30, 2017
Business Combinations  
Business Combinations

 

3. Business Combinations

 

We acquired CarSense, a stand-alone specialty retailer of used vehicles in the U.S. representing five locations, acquired CarShop, a stand-alone specialty retailer of used vehicles in the U.K. representing five locations and a vehicle preparation center, and acquired eight retail automotive franchises during the nine months ended September 30, 2017. During the nine months ended September 30, 2016, we acquired thirteen retail automotive franchises and five retail commercial truck dealerships. Our financial statements include the results of operations of the acquired entities from the date of acquisition. The fair value of the assets acquired and liabilities assumed have been recorded in our consolidated condensed financial statements, and may be subject to adjustment pending completion of final valuation. A summary of the aggregate consideration paid and the aggregate amounts of the assets acquired and liabilities assumed for the nine months ended September 30, 2017 and 2016 follows:

 

 

 

 

 

 

 

 

 

 

 

September 30,

 

 

    

2017

    

2016

    

Accounts receivable

 

$

11.1

 

$

3.9

 

Inventory

 

 

139.9

 

 

63.4

 

Other current assets

 

 

2.9

 

 

0.2

 

Property and equipment

 

 

21.8

 

 

12.1

 

Indefinite-lived intangibles

 

 

366.9

 

 

32.9

 

Other non-current assets

 

 

0.1

 

 

2.7

 

Current liabilities

 

 

(33.6)

 

 

(4.4)

 

Non-current liabilities

 

 

(3.2)

 

 

(4.8)

 

Total consideration

 

 

505.9

 

 

106.0

 

Consideration transferred through common stock issuance

 

 

(32.4)

 

 

 —

 

Contingent consideration

 

 

(20.0)

 

 

 —

 

Seller financed/assumed debt

 

 

(3.8)

 

 

 —

 

Total cash used in acquisitions

 

$

449.7

 

$

106.0

 

 

The following unaudited consolidated pro forma results of operations of PAG for the three and nine months ended September 30, 2017 and 2016 give effect to acquisitions consummated during 2017 and 2016 as if they had occurred effective at the beginning of the periods:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

 

 

    

2017

    

2016

 

2017

    

2016

    

Revenues

 

$

5,524.4

 

$

5,531.2

    

$

16,150.1

 

$

16,561.2

 

Income from continuing operations

 

 

94.3

 

 

93.7

 

 

285.6

 

 

282.1

 

Net income

 

 

94.4

 

 

93.9

 

 

285.3

 

 

281.0

 

Income from continuing operations per diluted common share

 

$

1.10

 

$

1.10

 

$

3.32

 

$

3.27

 

Net income per diluted common share

 

$

1.10

 

$

1.10

 

$

3.32

 

$

3.26