Avis Budget Group, Inc. (Nasdaq:CAR), a leading provider of vehicle rental services, announced today that it has acquired 100% ownership of its licensee in Brazil by purchasing equity and debt interests in the business for approximately $40 million. This acquisition will enable the Company to significantly increase the presence of its Avis and Budget brands in the fast-growing Brazilian car rental market, and to capture a larger share of Brazil’s domestic, international-inbound and international-outbound vehicle rentals.
“The Brazilian car rental market has grown substantially over the past several years and presents a great opportunity for our Company to expand its global footprint, consistent with our core strategic initiatives,” said Ronald L. Nelson, Avis Budget Group Chairman and Chief Executive Officer. “We plan to expand our brands’ presence significantly over the next several years to serve the needs of residents, local businesses, commercial travelers and vacationers in Brazil.”
Avis and Budget provide vehicle leasing and vehicle rental services with a fleet of more than 7,000 cars in Brazil, and operate at more than 50 rental locations, including at Congonhas and Guarulhos airports in Sao Paulo, at Santos Dumont and Galeão airports in Rio de Janeiro, at other airports and off-airport in major metropolitan markets. Brazil is also a significant source of international-outbound business, particularly to the United States, Argentina, Portugal and France.
Avis has operated in Brazil since 1978. The Company’s licensee in Brazil has operated the Avis brand there since 2003 and the Budget brand since 2005. Avis Budget Group acquired a 50% ownership stake in its existing Brazilian licensee in 2013, and is now taking full ownership of the business.