Penske Automotive Group, one of the biggest collection of auto dealerships in the U.S., will go private in a deal valued at $16.3 billion, an industry record.

The group entered a merger agreement with its two largest shareholders, Penske Corp. and Mitsui & Co. Ltd. Motown Acquisition Corp., owned by the two companies, is picking it up at $212 per share.

The cash buyout sets a record for the auto retail industry. Kerrigan Advisors, a sell-side broker of auto dealership buy-sell transactions, said last month that the deal was expected to value the group at $13.8 billion, a historical high, but it ticked far higher in the end.

“This transaction, the largest in the history of the industry, demonstrates the tremendous value embedded in the auto retail sector both in the U.S. and globally,” firm founder and Managing Director Erin Kerrigan.

Industry consolidation has been accelerating in recent years as auto groups look to cut costs and improve efficiencies. Kerrigan counted 224 transactions in the first half of the year, up 2% year-over-year and by 107% from the prepandemic average.

"This transaction marks an important next chapter for [Penske Automotive Group],” said Chairman and CEO Roger Penske.

“Mitsui has been a shareholder for 25 years, and we have had a productive relationship over the past quarter-century. Together with Mitsui, we will build on PAG's operational excellence and draw on our combined capabilities and networks to drive innovation and expand PAG's business through new opportunities and collaborative projects."