FSNA plans purchase of Advantage Rent-A-Car
FSNA plans to acquire Advantage Rent-A-Car Business.
Franchise Services of North America (FSNA) is to acquire Advantage Rent-A-Car Business.
Following the use of business negotiation techniques between the two firms, the companies have agreed to enter into an arms-length agreement regarding the purchase.
This will see Advantage's holding company Simply Wheelz and a number of additional divested assets being transferred from Hertz Global Holdings to FSNA.
Purchasing Advantage should help to facilitate Hertz's planned acquisition of Dollar Thrifty Automotive Group, which has an overall value of $2.3 billion (£1.45 billion).
"The acquisition of Advantage is a significant milestone for FSNA as it marks a major step forward in our growth strategy by considerably strengthening our position in the US car rental market," co-chairman and co-chief executive officer of FNSA Sandy Miller said.
A number of conditions will have to be completed before this deal goes ahead, including the approval of shareholders and the acceptance of the Toronto Stock Exchange Venture Exchange.
Posted by Edel Quinn
Source: FSNA press release, August 28th