China Auto Rental announced on July 9 that Warburg Pincus, a global private equity firm, will make a $200 million investment in the company.
The investment is the largest equity financing to date in China's car rental industry, according to the company.
Prior to the Warbug Pincus investment, China Auto Rental received an investment from Legend Holdings in August 2010. The company said it plans to strengthen its leadership in China and continue to build its management, operations, funding and cost advantages.
“Warburg Pincus’ investment in China Auto Rental is a testament to the company's performance and potential, and will further strengthen the company's shareholder base,”said China Auto Rental CEO Charles Lu. “With the support of Warburg Pincus and Legend Holdings, China Auto Rental will further achieve development in scale, and strengthen our brand and product offerings.”
As of June 30, China Auto Rentals reported a fleet size of about 32,000 vehicles, with nearly 600 service locations in 66 cities and 52 airports in China.
In May, China Auto Rental withdrew its application for an initial public offering in the New York Stock Exchange.