Europcar Group has signed an agreement to acquire Buchbinder, a large car rental company in Germany.

In terms of revenues and through the acquisition of Buchbinder, Europcar Group intends to improve its penetration of the low cost segment and become a leader in the local vans and trucks market, according to the company.

Founded over 60 years ago, Buchbinder has a network of 152 stations — of which 18 are airport stations — and an average fleet in excess of 20,000 vehicles. In addition to Germany, Buchbinder has locations in Austria, Hungary, and Slovakia.

The acquisition is subject to customary conditions precedent, including the approval of antitrust authorities, and is expected to close in the second half of 2017. The transaction, which is expected to generate significant synergies in the medium term, is based on a post-synergy Adjusted Corporate EBITDA multiple slightly above 5x.

“The acquisition of Buchbinder is a major strategic step for the Europcar Group as it will enable us to become the No. 1 player in both Germany and Austria, will reinforce our presence in the SME business segment, and will significantly boost both our low cost and vans and trucks businesses in those countries,” said Caroline Parot, CEO of Europcar Group. “We are pleased to welcome an experienced management team into the Group. Konrad Altenbuchner and his team are staying in the business and we look forward to working together with them on the integration of Buchbinder into the Europcar Group. This combination of our two complementary businesses will not only create a new market leader but is also expected to deliver significant cost and revenue synergies for the whole Group, allowing us to target a profitability for the combined business in line with our Group’s Ambition 2020.” 

“As a combined entity, we believe Buchbinder and the Europcar Group can provide a more comprehensive range, and as a result even better services to our customers,” said Konrad Altenbuchner, shareholder and managing director of Buchbinder. “I am delighted about this opportunity to strengthen the Buchbinder brand in the future and know that I can count on the support of all the employees of the Buchbinder Group to continue to spread the Buchbinder philosophy.”