FSNA Says Advantage Merger Deal Now Closed

Franchise Services of North America (FSNA) announced Dec. 12 that Adreca Holdings Corp., a subsidiary of Macquarie Capital, has closed its acquisition of Simply Wheelz LLC, the owner and operator of the Advantage Rent A Car brand, from Hertz Global Holdings Inc.

In conjunction with its acquisition of Advantage, Macquarie Capital agreed that Adreca will also acquire on-airport concessions of Dollar or Thrifty locations at an additional 13 airports from Hertz, according to the Dec. 12 announcement. Advantage already operates off-airport locations servicing three of those airports, and so the acquisition of these on-airport concessions will represent a net increase of 10 new locations.

Following this announcement, an executive from FSNA said that the company has closed deals to assume ownership of all 26 airport locations that Hertz was required by the Federal Trade Commission to divest — both those listed by Hertz as “initial airport locations” and “secondary airport locations” in its Nov. 20 merger presentation. 

Adreca’s acquisition of these additional airports and certain other divested assets from Hertz are expected to close in stages beginning in the first quarter of 2013, FSNA said. Adreca will be Hertz’s sole divestiture partner in conjunction with the dispositions required to be made by Hertz by the consent decree issued by the FTC.

FSNA and Adreca have entered into a management services agreement, in which FSNA will provide certain management services in respect to Advantage and the other assets divested by Hertz. Under this agreement, FSNA is entitled to its costs plus 25% in respect of services provided by FSNA employees and to recover its costs in regards to all other services.

Commenting on the acquisition, Thomas P. McDonnell, III, FSNA’s CEO and chairman said, “This is a great day for FSNA, our partner Macquarie Capital, and the more than 600 employees of Advantage Rent A Car. We are all excited to become North America’s fourth largest car rental company, and we look forward to continuing a legacy of great service to our customers, both new and old.”

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