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

Auto Manufacturers: Mobility Disruptors or Fleet Providers?

Maven’s Alex Keros shares insights into evolving smart mobility business models and new opportunities with fleet management.

What is Your Time Worth?

Personal observations of retail and travel transactions reveal just how much a consumer’s time is worth today, and how increasingly intolerant we are of inefficient transactions.

Safeguarding Your Business with Brokers

While the high-profile bankruptcy of Atlas Choice has left many car rental companies wary of working with brokers, rental companies can take steps to protect themselves and ensure a productive relationship.

Job Finder: Access Top Talent. Fill Key Positions.

>