San Diego Car Rentals to Buy Rent-A-Wreck

OWINGS MILLS, Md.-- Rent-A-Wreck of America Inc. announced the company is being bought by San Diego Car Rentals Inc. in a deal expected to close in mid-November.

Pending the necessary approvals of the sale, San Diego Car Rentals CEO Thomas L. Gruber will become Rent-A-Wreck's new CEO and sole director. He would succeed Kenneth Blum Sr.

Upon closing of the sale, holders of Rent-A-Wreck stock are expected to receive 36 cents per share of Rent-A-Wreck common stock and 86 cents per share of Rent-A-Wreck preferred stock. As of Oct. 6, Rent-A-Wreck had 4,186,296 shares of common stock and 1,084,375 shares of preferred stock outstanding.

Rent-A-Wreck this month will send out a stockholder proxy statement with merger information. The stockholder meeting is expected to be held in November.

Gruber is a former Rent-A-Wreck franchisee in San Diego.

"I am very excited to be part of the Rent-A-Wreck team again and look forward to building Rent-A-Wreck's business, reinforcing the excellent customer service our franchisees provide and responding to our franchisee's and customer's needs," Gruber said in a statement released publicly.

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

Car Rental Rates Up, Fleet Sales Down — Correlation?

Car rental companies’ recent fleet discipline is needed now more than ever.

Hertz, Avis Autonomy Partnerships: Good First Steps on a Long Path

Two new autonomous vehicle project partnerships bring the importance of fleet management to the fore.

An Inside Look at Car Rental in China

A trip to a new car rental convention in Guangzhou reveals a booming market, yet one facing unique challenges.

Job Finder: Access Top Talent. Fill Key Positions.

>