Avis Budget Group Inc. has agreed to purchase France Cars, a privately-held vehicle rental company based in France, to help expand its presence in the French market.
Terms of the transaction were not disclosed, according to the company.
This purchase will give Avis Budget Group the second-largest light commercial vehicle fleet in France, says the company. The acquisition will add 8,000 cars, vans, and light trucks to Avis Budget’s fleet and will also add more than 60 locations to the company's rental network.
France Cars generates vehicle rental revenues of approximately 60 million euros annually.
"We're excited to announce our agreement to acquire France Cars,” said Mark Servodidio, president, International, Avis Budget Group. “We are committed to strengthening our presence in the local market, and this acquisition will complement our existing operations in the country. France Cars will bring a strong presence in the French local market business and a leading position in the light commercial vehicle segment."
This transaction represents continued execution on Avis Budget's strategy to expand its presence in urban and suburban markets within Europe, according to the company. Last year, the company acquired Italy-based Maggiore Group.
"We are excited by Avis Budget Group's commitment to acquire France Cars and are looking forward to working closely together," said Thierry Jardin, CEO of France Cars.
Closing of the acquisition is subject to consultation with France Cars' employee representatives and customary conditions, including merger control clearance, and is expected to be completed prior to the end of 2016. This acquisition does not affect Avis Budget Group's previously announced intention to repurchase $350 to $400 million of its stock in 2016, according to the company.