Avis Budget Group has agreed to acquire its licensee for the Avis and Budget brands in Norway, Sweden and Denmark for approximately $50 million.
The licensee operates both the Avis and Budget brands throughout the region including Oslo, Stockholm, Copenhagen and Sweden's Arlanda and Goteberg airports.
Scheduled to close in the first quarter of 2015, the acquisition is expected to add more than $100 million of annual revenue and approximately $10 million of Adjusted EBITDA to Avis Budget Group — after synergies and in addition to royalties the licensee was paying to Avis, says the company.
"The Scandinavian territory represents one of our larger licensee acquisition opportunities and is consistent with our core strategic initiative of expanding our global footprint," said Ronald L. Nelson, Avis Budget Group CEO and chairman. "Along with the United Kingdom, it will be managed as part of a newly formed Northern unit within the EMEA region."