AMERICAN transportation services company Penske Automotive Group will acquire diesel and gas engine and power systems distributor MTU Detroit Diesel Australia (MTU-DDA) for an undisclosed sum.

The acquisition of MTU-DDA from the company’s two primary distribution partners, Daimler AG and MTU Friedrichshafen (an affiliate of Rolls-Royce Power Systems) will bring added scale and complement Penske’s existing Commercial Vehicle business (“PCV”) operating in these markets, Penske said.

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.

Coupled with PCV’s existing heavy and medium-duty truck, bus and spare parts distribution, upon completion of the transaction the company will be able to provide a full range of products and services to customers across these regions.

Penske Automotive Group chairman Roger S. Penske said combining MTU DDA’s engine and power systems sales with its existing Western Star, MAN Truck and Bus and Dennis Eagle truck distribution business provided an opportunity for Penske to scale its existing operations efficiently.

MTU-DDA is expected to contribute between $225 million and $250 million in annualised revenue to Penske Automotive Group when the deal is wrapped up in the fourth quarter of 2014.