The U.S. Federal Trade Commission has announced its approval of the sale of 12 Advantage Rent A Car locations to Avis Budget Car Rental LLC and 10 locations to The Hertz Corp, according to Franchise Services of North America Inc. (FSNA).
Avis and Hertz were previously selected as successful bidders for the Advantage locations in accordance with bidding procedures approved by the U.S. Bankruptcy Court for the Southern District of Mississippi (the "Court") in Simply Wheelz insolvency proceedings. Simply Wheelz is FSNA’s wholly-owned subsidiary, which acts as Advantage Rent A Car.
Pursuant to binding term sheets agreed to by the respective parties and approved by the court, Avis will acquire 12 locations for consideration of approximately $6 million in cash — plus the assumption of certain liabilities of the Advantage business associated with such locations, according to FSNA.
And according to FSNA, Hertz will acquire 10 locations for consideration of approximately $200,000 in cash — plus the assumption of certain liabilities of the Advantage business associated with such locations — and the continued right of Advantage to use Hertz's vehicle fleet during April, May and June 2014, which the parties agreed had a value of approximately $3.5 million.
The Avis and Hertz sales are expected to be completed by the end of June, says FSNA.