Avis Budget Group Inc. announced today that it has agreed to acquire a 50% ownership stake in its existing Brazilian licensee. According to Avis, this investment of approximately $50 million will enable the company to increase the presence of its Avis and Budget brands in the fast-growing Brazilian car rental market, and to capture a larger share of Brazil's domestic, international-inbound and international-outbound vehicle rental spend.

"Expanding our global footprint and increasing our presence in faster-growing markets are two of our key strategic growth initiatives, and investing in South America's largest economy is consistent with these goals," said Ronald L. Nelson, Avis Budget Group chairman and chief executive officer.

The Brazilian licensee, Grupo Dallas, has operated the Avis brand since 2003 and the Budget brand since 2005, and generated rental revenues of approximately $50 million in 2012, according to Avis. With a fleet of more than 4,000 cars in Brazil, Avis and Budget operate more than 40 rental locations, including at Congonhas and Guarulhos airports in Sao Paulo and at Santos Dumont and Galeao airports in Rio de Janiero.

"Avis Budget Group's investment demonstrates their commitment to having a strong and robust competitive presence in Brazil," said Afonso Celso de Barros Santos, president of Grupo Dallas. "It also is a sign of their ongoing support for our partnership as the best way to achieve this goal, and so we are proud and excited to move forward under this new agreement."

By 2016, the Brazilian car rental market is expected to reach $4 billion in annual revenue, representing a 13% compound annual growth rate since 2008. Going forward, growth is expected to be driven by increases in both domestic and international tourism, including the 2014 FIFA World Cup and the 2016 Olympic Games, growth in business travel spending, improvements in airport infrastructure and improved access to long-term financing.