Avis Budget Group To Acquire Maggiore Group Of Italy For $170 Mln

(RTTNews) - Avis Budget Group, Inc. (CAR), a provider of vehicle rental services, Monday announced an agreement to acquire Maggiore Group, Italy's fourth-largest vehicle rental business, for approximately $170 million. The acquisition is expected to add approximately $160 million of annual revenue and $30 million of Adjusted EBITDA to Avis Budget Group.

Maggiore has a wide network with 140 locations for car and van rentals. The transaction will make Avis Budget Group the largest vehicle rental company in Italy.

Soon after the acquisition, Avis Budget Group will launch a Budget-Maggiore dual-branding strategy and the combined company will continue to provide van rentals under Maggiore's AmicoBlu brand. The acquisition is expected to close in second quarter 2015, subject to customary closing conditions.

Avis Budget expects to fund the acquisition with available cash and/or incremental corporate debt borrowings.