Avis to buy Christchurch-based Apex Car Rentals for US$29M cash plus fleet
By Paul McBeth
Sept. 6 (BusinessDesk) - Avis Budget Group, which operates the global Avis and Budget car rental brands, has agreed to buy Christchurch-based Apex Car Rentals for US$29 million cash plus the book value of its 4,000-strong fleet.
New Jersey-based Avis expects to settle the deal next month, subject to customary closing conditions, it said in a statement. Apex also stands to receive earn-out payments if certain financial targets are met from the trans-Tasman operation.
"This transaction represents another step in our strategic efforts to expand our global network, in a market where we have considerable experience," said Patric Siniscalchi, Avis president of the Latin American and Asia Pacific regions. "The transaction also provides us with additional opportunities with our portfolio of brands to meet the vehicle rental needs of all New Zealand and Australia visitors and residents."
Avis Budget's Australasian acquisition comes after rival Hertz Global last month spent US$2.6 billion boosting its share of the US market when it took over Dollar Thrifty Automotive Group.
Apex chief executive Phil Lennon, who set up the company in 1992, will stay in the rental company's management after the acquisition.