Eurazeo has finalised the acquisition of 100 per cent of the share capital of Europcar from Volkswagen AG.The closing of this transaction comes further to authorisation from the relevant competition authorities in France, Germany and Italy.
The acquisition enterprise value stands at €3,083 million after taking into account a net debt of €1,820 million at end December 2005 (pro-forma of the payment of dividend before the closing of the transaction).
To finance this acquisition Eurazeo invested €775 million of equity. The remainder is financed by a bond issue of €550 million and a fleet financing and a fleet financing programme of €2,9 billion, of which circa €2 billion has been drawn down to date. The bond issue was finalised on 12 May 2006 and was considerably oversubscribed. With the financing in place, the average weighted cost of Europcar is below six per cent.
Also, Europcar announced that it has entered into exclusive negotiations with LeasePlan Corporation with the aim to acquire Keddy, the number one car rental company in Belgium.
Xavier Marin, member of the Eurazeo Executive Board and non-executive chairman of Europcar Group said : “We have already started to actively work with Europcar’s management on actions that will allow the group to pursue and to accelerate its growth strategy. The quality of its teams, the power of its brand, the strength of its network and the performance of its operational systems makes us very confident of Europcar’s creation potential.”
Salvatore Catania, managing director of Europcar Group, said : “we have the full support of our new shareholder and all the necessary financial resources to assert our position as a leader in Europe and to develop our worldwide network.”