FSNA Provides Update on New Advantage Acquisition Details

Franchise Services of North America Inc. provided an update Nov. 20 on transaction timing further to its previous announcements relating to its agreement to acquire Simply Wheelz LLC, a Delaware limited liability company and the owner of the Advantage Rent-A-Car brand, and certain other divested assets from Hertz Global Holdings Inc.

The company also made updates with regard to the assets in accordance with the press release of Hertz identifying the potential for 13 additional on-airport concessions to be acquired by the company.

On Nov. 15, 2012, the United States Federal Trade Commission (FTC) issued a consent order that effectively completed the review of the Hertz acquisition of Dollar Thrifty Automotive Group Inc. by the FTC. Hertz then announced Nov. 20 that it has completed its acquisition of Dollar Thrifty.

FSNA’s successful completion of the acquisition of the assets was subject to the completion of the Hertz acquisition of Dollar Thrifty. 

Details Regarding Amendments to the Transaction

On Aug. 28, 2012, FSNA announced that, upon completion of the acquisition, the company would operate Advantage from 62 rental locations servicing airports across the United States. As a result of the FTC consent order, Hertz will be required to provide the company, or another FTC-approved buyer, with the right to operate on-airport concessions at an additional 13 airports. 

As Advantage already operates off-airport locations servicing three of these airports, if FSNA is the buyer of these additional locations, it will result in a net increase of 10 new locations for the company. As a result, the company may acquire up to 72 rental locations in new markets in the United States. 

The acquisition will proceed by way of the previously announced merger between wholly-owned subsidiaries of the company and Macquarie Capital. Macquarie Capital, through a wholly-owned subsidiary, has entered into a purchase agreement with Hertz for the acquisition of the assets.

Closing of the acquisition of Advantage by a subsidiary of Macquarie Capital is now scheduled to take place on Dec. 12, 2012, with the closings of the remaining assets to occur in 2013.

The acquisition and merger is expected to close in the first quarter of 2013.


Read more about the mergers here.

Comment On This Story

Name:  
Email:  
Comment: (Max. 10000 characters)  
Please leave blank:
* Please note that every comment is moderated.

Newsletter: Sign up to receive latest news, articles, and much more.

Read the latest

Auto Focus Blog: A blog covering fleets, auto rental and the business of cars

Autonomous Vehicles and the Changing Role of the Fleet Manager

With fewer drivers and substantially longer fleet lifecycles, fleet managers will pivot to new job functions.

2017: Fleet Mix Will Be Paramount

Car rental companies are migrating to vehicle segments with better residual values, though not without bumps in the road.

Auto Rental Summit: Five Trend Lines

Taking in the seminars, discussions, and networking at the 2016 Auto Rental Summit, trend lines emerged around shifts in model mix, data protection issues, increasing labor costs, workforce engagement, and new platforms to rent cars.

Job Finder: Access Top Talent. Fill Key Positions.