Avis Budget Group, Inc. (Nasdaq:CAR) and Apex Car Rentals have announced that they have entered into a definitive agreement for the acquisition of Apex by Avis Budget.
The acquisition is scheduled to close in October 2012, subject to customary closing conditions.
Apex Car Rentals is New Zealand’s largest independently owned car rental company and offers a comprehensive fleet of more than 4,000 rental cars through locations in New Zealand and Australia, including locations serving New Zealand’s major airports. The acquisition of Apex further expands Avis Budget Group’s presence in Australia and New Zealand, where the Avis and Budget brands each currently have a leading presence.
Apex was founded in 1992 and has traditionally served value-oriented leisure travelers. Pursuant to the purchase agreement, Avis Budget will acquire the assets of Apex in exchange for approximately US$29 million in cash, plus the book value of Apex’ rental fleet and potential earn-out payments based on Apex’ future financial performance.
“This transaction represents another step in our strategic efforts to expand our global network, in a market where we have considerable experience,” said Patric Siniscalchi, President, Latin America/Asia Pacific, Avis Budget Group. “The transaction also provides us with additional opportunities with our portfolio of brands to meet the vehicle rental needs of all New Zealand and Australia visitors and residents.”
“We’re pleased to be joining a leading global company that puts customers first,” said Apex Founder and Chief Executive Officer Phil Lennon, who will continue to serve in the Apex management team following the acquisition. ”We will continue to operate our business and serve our customers ‘the Kiwi way,’ which has helped us grow and evolve to achieve the success that we’ve enjoyed.”