OWINGS MILLS, Md.-- Rent-A-Wreck of America Inc. announced the company is being bought by San Diego Car Rentals Inc. in a deal expected to close in mid-November.

Pending the necessary approvals of the sale, San Diego Car Rentals CEO Thomas L. Gruber will become Rent-A-Wreck's new CEO and sole director. He would succeed Kenneth Blum Sr.

Upon closing of the sale, holders of Rent-A-Wreck stock are expected to receive 36 cents per share of Rent-A-Wreck common stock and 86 cents per share of Rent-A-Wreck preferred stock. As of Oct. 6, Rent-A-Wreck had 4,186,296 shares of common stock and 1,084,375 shares of preferred stock outstanding.

Rent-A-Wreck this month will send out a stockholder proxy statement with merger information. The stockholder meeting is expected to be held in November.

Gruber is a former Rent-A-Wreck franchisee in San Diego.

"I am very excited to be part of the Rent-A-Wreck team again and look forward to building Rent-A-Wreck's business, reinforcing the excellent customer service our franchisees provide and responding to our franchisee's and customer's needs," Gruber said in a statement released publicly.