Avis Budget Group Inc. has agreed to acquire its existing Budget Car & Truck Rental licensee in Edmonton, Alberta, Canada. This licensee has 26 rental locations in seven Canadian cities.
The investment of approximately $30 million (plus the cost of acquired fleet) will enable Avis to expand its number of company-operated locations while gaining a larger share of Canada's domestic, international-inbound and truck rental spend, says the company.
"Expanding our global footprint and enhancing our customer experience are two of our key strategic growth initiatives. Investing in our presence in Edmonton — Alberta's capital, Canada's fifth-largest city and a world center for the oil, gas and petrochemical industries — is consistent with these goals," said Ronald L. Nelson, Avis Budget Group chairman and chief executive officer. "Budget Edmonton has the largest and most diverse fleet in the area and is well-positioned for further growth and prosperity."
Budget has operated in Edmonton since 1963. Starting with a dozen vehicles and one wash bay attendant, Lionel Groberman expanded the business to several locations (including Edmonton, Cold Lake, Lloydminster and Saskatoon) with a fleet of more than 4,000 vehicles. These locations will now be integrated into Avis Budget Group’s North America operating region and managed by the Canada operations management team, says Avis.
"This investment will enable us to substantially expand our Canadian fleet and capture a larger share of this expanding car rental market," said Tom Gartland, president, North America, Avis Budget Group. "In addition, by seizing the opportunity now to increase our presence in this market, we will be able to leverage our licensee's established presence and further enhance Budget brand loyalty and our profitable revenue growth."
Avis Budget Group acquired its Budget licensee in Toronto in 2005, its Budget licensee in Ottawa in 2005, its Budget licensee for Newfoundland and Halifax in 2008 and its Budget licensee in Grand Prairie in 2012, according to the company.