ST. LOUIS – Enterprise Rent-A-Car announced it has entered into a definitive agreement to purchase Vanguard Car Rental Group Inc. The transaction between two privately held companies is expected to close in the third or fourth quarter of 2007, contingent upon clearance under the Hart-Scott-Rodino Anti-Trust Improvements Act and other customary closing conditions.
The acquisition will join two rental car companies with complementary businesses. St. Louis-based Enterprise’s primary strength lies in the in-town and insurance replacement segments of the industry. Vanguard, based in Tulsa, Okla., operates the National Car Rental and Alamo Rent-A-Car brands, which serve the airport segment of the market. According to Enterprise press materials, capitalizing on the companies’ assets in these different segments will allow more efficient fleet utilization and enhance the combined companies’ ability to offer low prices and quality customer service.
“As the dynamics of our industry continue to evolve, it’s clear to us that the future belongs to the service providers who offer the broadest array of services for anyone who needs or wants to rent a car,” said Enterprise Rent-A-Car Chairman and CEO Andrew C. Taylor. “Joining forces with National and Alamo will enable us to do just that, from replacement and leisure rentals to small-business and corporate customers."
According to Taylor, the move also “makes great sense for the employees of both organizations. This transaction will give our combined operations a comprehensive range of assets that will enhance our ability to compete vigorously in every segment of the industry and for all kinds of customers."
"By combining our companies, we will be able to offer an expanded network to better serve the needs of car rental customers and will continue to be able to deliver the award-winning service they have come to expect with each rental experience,” said William E. Lobeck, president and CEO, Vanguard Car Rental USA Inc.
Financial terms of the transaction were not disclosed.