Avis Budget Group Inc. has completed its previously announced acquisition of its Budget Car Rental licensee for Southern California and Las Vegas for approximately $210 million, plus the cost of acquired fleet.
The acquisition is expected to add $100 million of revenue and more than $25 million of Adjusted EBITDA to Avis Budget Group, after synergies, says the company.
The licensee acquired operates directly at Los Angeles International and Bob Hope Burbank airports, as well as numerous local market locations throughout the Los Angeles metropolitan area, according to the company.
The acquisition was funded primarily with the proceeds from a $175 million offering of 5.50% senior notes due 2023, issued with a yield to maturity of 5.56%, which the company completed earlier this month.
Budget Car Rental has operated in southern California since being founded by the Mirkin family in 1958, and the licensee held a long-standing, exclusive, royalty-free right to use the Budget brand there.