PARIS--(BUSINESS WIRE)--Nov. 7, 2019--
Europcar Mobility Group (Paris:EUCAR)
In line with SHIFT 2023, Europcar Mobility Group, the leader of car rental in Europe with a 27% market share, announces today that it has acquired Fox Rent A Car’s and holds a 100% stake in one of the largest independent players of the US car rental market.
This strategic acquisition, which will be the last of the Group’s transformational M&A program begun 3 years ago, marks a key milestone in the roll out of SHIFT 2023, its strategic roadmap to reach €4Bn revenues and 15m active customer base by 2023.
The integration and synergies processes begin as of today, with the objective to make Fox Rent A Car the platform for Europcar Mobility Group’s future developments in the USA, world’s biggest car rental and mobility market.
This will greatly strengthen the Group’s ability to serve its customer base on a global scale, thanks the strong ground presence of Fox Rent A Car in 15 of the 25 key US airports, notably making Europcar Mobility Group’s portfolio of services to B2B international key accounts even more competitive.
Besides, this acquisition represents a significant revenue growth opportunity for Europcar Mobility Group, considering:
On one hand, that travellers coming from the rest of the world account for $2.5bn of the US Car rental market, by far the biggest destination for car rental customers worldwide,
and, on the other hand, that US residents travelling to our European markets represent a $1bn opportunity, confirming this is the most important source of business for car rental companies worldwide.
These two fronts are equally important for the development of its B2B and leisure businesses, given their strong upside potential for its international rental brands: Europcar, InterRent and Goldcar, everywhere the Group operates, be it directly or via its franchisees & Chinese, Indian, Japanese and Canadian partners.
Fox Rent A Car operates a network of 21 corporate stations and 100+ affiliates, with an attractive value for money price positioning, an impressive track record of organic growth (delivering an average 6.4% revenue growth p.a. between 2013 and 2018) and a fleet of approximately 18,000 vehicles. In 2018, Fox Rent A Car generated around $280m revenue.
Europcar Mobility Group expects the transaction to be neutral to its earnings per share in 2020 and to become fully accretive from 2021 onwards.
The transaction was financed using cash and owned shares on balance sheet, and the full impact of the transaction on the group corporate net leverage will be below 0,3x at the end of 2019.
For Caroline Parot, Chief Executive Officer of Europcar Mobility Group:
“The acquisition of Fox Rent A Car, one of the largest independent players in the US car rental market, is the last key step in our transformational M&A program, which enabled us to become a truly global mobility service company.
As the leader of car rental in Europe with a 27% market share and a major player in the fast-evolving mobility ecosystem, in line with our SHIFT 2023 ambition, Fox Rent A Car’s integration will be the platform for our future developments in the USA, giving us access to the largest car rental and mobility services market in the world, as well as the opportunity to serve our leisure and corporate customers globally, everywhere we operate, be it directly or via our franchisees & Chinese, Indian, Japanese and Canadian partners.
This will greatly strengthen our ability to serve our customer base on a global scale, thanks the strong ground presence of Fox Rent A Car in 15 of the 25 key US airports, notably making our portfolio of services to B2B international key accounts even more competitive.”
For Mike Jaberi and Allen Rezapour, co-Managing Directors of Fox Rent A Car:
“The Fox Rent A Car management team is very happy to join the Europcar Mobility Group family and excited by the growth opportunities it is going to create. We look forward to beginning to work closely with our new European colleagues over the coming months, with the objective of progressively implementing fruitful inbound & outbound business synergies with Europcar Mobility Group's powerful brands. We are confident that we have very promising perspectives ahead of us.”
About Europcar Mobility Group
Europcar Mobility Group is a major player in mobility markets and listed on Euronext Paris. The mission of Europcar Mobility Group is to be the preferred “Mobility Service Company” by offering alternative attractive solutions to vehicle ownership, with a wide range of mobility-related services: vehicle-rental, chauffeur services, car-sharing, scooter-sharing and peer-to-peer car-rental. Customers’ satisfaction is at the heart of the Group’s mission and all of its employees and this commitment fuels the continuous development of new services. Europcar Mobility Group operates through multi brands meeting every customer specific needs; its 4 major brands being: Europcar® - the European leader in vehicle rental services, Goldcar® - the most important low-cost car-rental company in Europe, InterRent® – ‘mid-tier’ brand focused on leisure and Ubeeqo® – one of the European leaders in car-sharing (BtoB, BtoC). Europcar Mobility Group delivers its mobility solutions worldwide solutions through an extensive network in 140 countries (including 20 wholly owned subsidiaries in Europe, 2 in Australia and New Zealand, franchises and partners).
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This press release includes forward-looking statements based on current beliefs and expectations about future events. Such forward-looking statements may include projections and estimates and their underlying assumptions, statements regarding plans, objectives, intentions and/or expectations with respect to future financial results, events, operations and services and product development, as well as statements, regarding performance or events. Forward-looking statements are generally identified by the words “expects”, “anticipates”, “believes”, “intends”, “estimates”, “plans”, “projects”, “may”, “would”, “should” or the negative of these terms and similar expressions. Forward looking statements are not guarantees of future performance and are subject to inherent risks, uncertainties and assumptions about Europcar Mobility Group and its subsidiaries and investments, trends in their business, future capital expenditures and acquisitions, developments in respect of contingent liabilities, changes in economic conditions globally or in Europcar mobility Group’s principal markets, competitive conditions in the market and regulatory factors. Those events are uncertain; their outcome may differ from current expectations which may in turn materially affect expected results. Actual results may differ materially from those projected or implied in these forward-looking statements. Any forward-looking statement contained in this press release is made as of the date of this press release. Other than as required by applicable law, Europcar Mobility Group does not undertake to revise or update any forward-looking statements in light of new information or future events. The results and the Group's performance may also be affected by various risks and uncertainties, including without limitation, risks identified in the "Risk factors" of the Annual Registration Document registered by the Autorité des Marchés Financiers on March 27, 2019 under the number R.18-020 and also available on the Group's website: www.europcar-mobility-group.com. This press release does not contain or constitute an offer or invitation to purchase any securities in France, the United States or any other jurisdiction.
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Source: Europcar Mobility Group
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