Enterprise Rent-A-Car and Advantage Rent-A-Car announced March 3 they have reached an agreement on the purchase by Enterprise of certain assets of Advantage out of bankruptcy for $19 million. The transaction is subject to approval by the bankruptcy court, which may also consider competing bids. If accepted, the transaction is expected to close in April 2009.
The asset purchase agreement gives Enterprise the ability to close or continue to operate any of Advantage’s rental car facilities. Currently, Advantage operates eight locations in four cities: Denver, Orlando, Salt Lake City and Phoenix. The transaction also applies to certain other Advantage properties that recently closed.
Upon the court’s approval of the Enterprise purchase agreement, Enterprise will take ownership of:
the right to lease all or part or Advantage’s rental vehicle fleet;
Advantage’s customer lists;
Advantage’s Web address and toll-free reservation phone lines;
certain Advantage corporate accounts;
Advantage Rent-A-Car trademark and copyright marks;
Advantage Yellow Pages advertising; and
Advantage trade secrets, know-how, and other intellectual property.
In addition, Advantage Chairman Dennis Hecker will enter into a consulting agreement with Enterprise as part of the transaction. “We look forward to working with Mr. Hecker in the coming years and to serving the quality customer base he built at Advantage,” said Andrew Taylor, chairman and chief executive officer of Enterprise Rent-A-Car.
“I am excited by the sale of Advantage to Enterprise,” said Hecker. “I am confident that Advantage’s loyal customers will enjoy the great service and the expanded network of locations offered by the Enterprise companies.”
