Cendant Corporation announced Friday that it has completed the purchase of substantially all of the assets of Budget Group, Inc. The purchase price was $110 million in cash plus the payment of certain transaction related expenses and assumption of certain contracts and trade payables. The total transaction value is between $500 and $600 million including cash integration costs, plus non-recourse vehicle debt of approximately $2.5 billion.
Budget is the third-largest general use car and truck rental company in the United States. The acquisition includes Budget operations and franchised locations in the Americas, Caribbean, Australia and New Zealand and rights to franchise and operate in Asia. Cendant, through its Avis Rent A Car, already operates or franchises Avis car rental locations in the same regions. As a result of the acquisition, Cendant is now the world´s largest general use car rental operator with over 6,000 car and truck rental locations worldwide, including dealer locations. The transaction does not include Budget Group´s Europe, Middle East and Africa operations and franchises.
Avis and Budget will continue to operate as separate brands.
(source: Cendant Corporation)