NEW YORK (TheStreet) -- Shares of Penske Automotive Group (PAG) finished the day in the green, closing up by 1.60% to $50.79 on Friday afternoon, following a Reuters report suggesting the automotive retailer is considering the sale of its Truck-Lite Co. unit, a truck lighting, wiring harness and mirror maker, in a deal that could value the business at $1 billion.
The company, which is controlled by the billionaire and former race car driver Roger Penske, is said to have hired the investment bank Robert W. Baird & Co. to run an auction for Truck-Lite, sources told Reuters, adding that Truck-Lite has an annual EBITDA of close to $100 million.
Bloomfield Hills, MI.-based Penske Automotive Group is the world's second-largest automotive dealership group. Truck-Lite, which is based in Falconer, NY, manufactures lighting and safety accessories for the heavy-duty truck, trailer, and commercial vehicle sectors.
Separately, TheStreet Ratings team rates PENSKE AUTOMOTIVE GROUP INC as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate PENSKE AUTOMOTIVE GROUP INC (PAG) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its increase in stock price during the past year, growth in earnings per share, revenue growth, reasonable valuation levels and notable return on equity. We feel its strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated."