by Donald Wood
Last updated: 5:30 PM ET, Tue March 3, 2015
One of the leading auto and van rental companies in North America, Avis Budget Group Inc., has agreed to purchase the Maggiore Group, one of largest vehicle rental companies in Italy.
According to Chelsey Dulaney of The Wall Street Journal, the deal is worth $170 million.
In the report from Dulaney, the Avis Budget Group will be looking to, "launch a dual Budget-Maggiore brand, though the company will continue to rent vans under Maggiore's AmicoBlu brand."
The Maggiore Group has been an Italian staple since 1947 and was the nation's fourth largest vehicle rental company, grossing an annual revenue of more than $160 million, according to Dulaney. With the purchase, Avis Budget Group Inc. ensures its spot as one of the top companies in the Italian market.
When asked about the purchase and the impact it will have on Avis Budget Group Inc., chairman and chief executive officer Ronald L. Nelson shared his thoughts in a press release, via AutoRentalNews.com:
"Maggiore has an outstanding market presence in Italy for both car and van rentals, which makes the company an excellent addition to our existing operations there. The Italian vehicle rental market has been resilient and profitable, particularly in the peak summer season, and I'm excited that we will be able to acquire this business at a multiple that will be accretive to our earnings."
While this is a major initial investment on the company's behalf, the recent track record of success for Avis Budget Group is a good sign that cornering the Italian market will be a major coup for the company in the long haul.
There will still be plenty of market competition with companies such as Auto Europe, Sixt and Europcar, but purchasing the Maggiore Group gives the Avis Budget Group a recognizable and homegrown brand for its corporate expansion in Italy.
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