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.