Avis Budget Group has completed its acquisition of Avis Europe in a $1 billion deal.
The combined company is now one of the largest vehicle rental companies in the world, with branded rental locations in approximately 175 countries.
“We are thrilled to be closing our acquisition of Avis Europe and re-uniting the Avis and Budget brands globally,” said Ronald Nelson, Avis Budget Group chairman
“This transaction positions us well to capture incremental growth in global travel and will enable us to more effectively serve our customers worldwide.”
The deal was welcomed by analysts, with ratings agency Standard & Poor’s removing the prospect of downgrading Avis Budget Group further, arguing the acquisition would boost its competitive position.
Standard & Poor’s instead confirmed a B-plus rating, with a stable rating.
The company last month walked away from its pursuit of Dollar Thrifty Automotive Group, leaving rival Hertz free to complete the deal once regulatory approval is granted.
Prior to the completion of the acquisition, Avis Europe had been an independently-owned licensee of Avis Budget Group, operating the Avis brand in Europe, the Middle East, Africa and Asia since 1986.
The equity purchase price of approximately $1 billion and the repayment of certain Avis Europe debt obligations are being funded through a combination of existing cash and incremental borrowings.
“The acquisition is expected to be accretive to Avis Budget’s earnings per share, excluding any integration and other one-time costs and the non-cash effects of purchase accounting,” the new company said in a statement this morning.
Avis recently celebrated a number of successes at the prestigious World Travel Awards.
The brand was named Africa’s Leading Business Car Rental Company, Indian Ocean’s Leading Car Rental Company and Egypt’s Leading Car Rental Company at a Gala Ceremony in Sharm el Sheikh in September.