Franchise Services of North America Inc. provided an update Nov. 20 on transaction timing further to its previous announcements relating to its agreement to acquire Simply Wheelz LLC, a Delaware limited liability company and the owner of the Advantage Rent-A-Car brand, and certain other divested assets from Hertz Global Holdings Inc.
The company also made updates with regard to the assets in accordance with the press release of Hertz identifying the potential for 13 additional on-airport concessions to be acquired by the company.
On Nov. 15, 2012, the United States Federal Trade Commission (FTC) issued a consent order that effectively completed the review of the Hertz acquisition of Dollar Thrifty Automotive Group Inc. by the FTC. Hertz then announced Nov. 20 that it has completed its acquisition of Dollar Thrifty.
FSNA’s successful completion of the acquisition of the assets was subject to the completion of the Hertz acquisition of Dollar Thrifty.
Details Regarding Amendments to the Transaction
On Aug. 28, 2012, FSNA announced that, upon completion of the acquisition, the company would operate Advantage from 62 rental locations servicing airports across the United States. As a result of the FTC consent order, Hertz will be required to provide the company, or another FTC-approved buyer, with the right to operate on-airport concessions at an additional 13 airports.
As Advantage already operates off-airport locations servicing three of these airports, if FSNA is the buyer of these additional locations, it will result in a net increase of 10 new locations for the company. As a result, the company may acquire up to 72 rental locations in new markets in the United States.
The acquisition will proceed by way of the previously announced merger between wholly-owned subsidiaries of the company and Macquarie Capital. Macquarie Capital, through a wholly-owned subsidiary, has entered into a purchase agreement with Hertz for the acquisition of the assets.
Closing of the acquisition of Advantage by a subsidiary of Macquarie Capital is now scheduled to take place on Dec. 12, 2012, with the closings of the remaining assets to occur in 2013.
The acquisition and merger is expected to close in the first quarter of 2013.