Enterprise Rent-A-Car, the nation's largest
car rental company, has entered into a definitive agreement to
acquire the fourth largest company, Vanguard Car Rental Group,
parent to the National and Alamo car rental brands.
Financial terms of
the agreement, which still has to clear government anti-trust
hurdles, were not disclosed by either of the privately held
companies.
It was unclear what
would happen to the National and Alamo brands, should the deal be
approved.
"We don't know
yet," said Enterprise's spokeswoman Christy Conrad. "Many of those
questions will have answered once the transaction is
completed."
The acquisition
would only involve Vanguard's North America operations, since
Vanguard sold its Europe, Middle East and Africa subsidiary,
Vanguard Car Rental EMEA, to the Europcar Group, in early
March.
Nonetheless,
purchasing Vanguard would enable Enterprise to gain a significant
airport presence. Of Enterprise's current 6,019 locations in the
U.S., only about 230 are in airports. By comparison, virtually all
of Vanguard's Alamo and National locations are in
airports.
That would place
Enterprise in direct, head to head competition with Hertz, Avis and
Budget in most markets.
"It's clear to us
that the future belongs to the service providers who offer the
broadest array of services for anyone who needs or wants to rent a
car," said Enterprise Rent-A-Car Chairman and CEO Andrew Taylor in
a statement. "Joining forces with National and Alamo will enable us
to do just that, from replacement and leisure rentals to
small-business and corporate customers."
William Lobeck,
president and CEO, Vanguard Car Rental USA, added that "by
combining our companies, we will be able to offer an expanded
network to better serve the needs of car rental customers and will
continue to be able to deliver the award-winning service they have
come to expect with each rental experience."
To
contact reporter Michael Milligan, send e-mail to [email protected].