Avis Budget Acquires Maggiore Group in $170M Deal

Photo courtesy of Atomic Taco/Flickr.
Photo courtesy of Atomic Taco/Flickr.

Avis Budget Group Inc. has agreed to acquire the Maggiore Group, one of Italy’s largest vehicle rental companies.

The net purchase price will be approximately $170 million, and the transaction is scheduled to close in second quarter 2015, subject to customary closing conditions, according to Avis.

Operating through a network of more than 140 locations, this acquisition is expected to add approximately $160 million of annual revenue and $30 million of Adjusted EBITDA to Avis Budget Group, once the two businesses have been fully integrated, according to the company.

“Maggiore has an outstanding market presence in Italy for both car and van rentals, which makes the company an excellent addition to our existing operations there,” said Ronald L. Nelson, Avis Budget Group chairman and chief executive officer. “The Italian vehicle rental market has been resilient and profitable, particularly in the peak summer season, and I’m excited that we will be able to acquire this business at a multiple that will be accretive to our earnings.”

Avis has operated in Italy since 1957, while Maggiore has operated in Italy since 1947.

“We deliver the Maggiore Group into the solid hands of Avis Budget, content that the Maggiore brand will be developed and strengthened in the long term in the global market,” said Vittorio Maggiore, president of the Maggiore Group. “Avis Budget has always been committed to excellent customer service, a philosophy that the Maggiore Group has always believed in. I am sure that this common approach will be beneficial to our customers in the future.”

Following the purchase, Avis Budget will launch a Budget-Maggiore dual-branding strategy intended to build on the strength of Maggiore in the Italian market and to accelerate the development of the Budget Car Rental brand, says the company.

The combined company will continue to provide van rentals under Maggiore’s AmicoBlu brand.

Comment On This Story

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

Market Forces Driving Car Rental in 2018

An analysis of the conference calls of Avis Budget Group and Hertz Global Holdings reveal trends and initiatives involving fleet right sizing, pricing, ancillary revenue opportunities, and renting to ride-hailing drivers.

Trends Moving the Truck Market

Storylines that emerged from the 2018 Work Truck Show include the increasing need for on-site productivity, inclusion of active safety systems in trucks, DPF frustrations affecting product decisions, data management, and the growing link between fleet management and company revenue.

MIT Study Reinforces the Newfound Importance of Fleet

Uber and Lyft drivers make far less when factoring vehicle expenses, though the actual numbers are now in dispute. A proper lifecycle cost analysis would’ve helped, and shows the benefit of collaboration with fleet professionals.

Job Finder: Access Top Talent. Fill Key Positions.