For the last 17 months, Avis Budget Group (CAR) and Hertz Global Holdings (HTZ) have been bidding to acquire the Dollar Thrifty Automotive Group (DTG), a car rental company. Yesterday, Avis withdrew from the competition when they closed a deal to purchase Avis Europe. Avis Europe has 4,050 outlets in 112 countries throughout Europe, the Middle East, Africa, and Asia. Ron Nelson, Avis Budget’s CEO, said that “The transaction re-unites the global operation of the Avis and Budget brands under one corporate umbrella, and is both financially and strategically compelling.”
Avis Budget will have to pay cash, sell stock and probably take loans to complete the deal with Avis Europe. This cash requirement rules out purchasing Dollar Thrifty. Avis is a solid company and with the new consolidation it should become even stronger.
Among Avis’ management are Patric Siniscalchi the Executive VP of International Operations. He has worked with Avis International since 1980 in various international asignments.
Thomas M. Gartland is the Executive VP of Sales, Marketing and Customer Service. He contributes 28 years of leadership experience to Avis.
Gerard Insall is a Senior VP and the CIO. He has been managing information technology for the last 20 years.
The stock was rising until the economic problems of May and has fallen 6 points (about a third) since then. Probably less people are traveling and renting cars due the economic uncertainty and downturn. When the economy hits bottom and starts to rise, I believe that Avis Budget will be a good acquisition.
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