Europcar Group has agreed to acquire Buchbinder, one of the largest car rental companies in Germany.
Germany is the largest country for the Europcar Group in terms of revenues and through the acquisition of Buchbinder the company intends to significantly improve its penetration of the low cost segment.
Europcar also hopes to become the market leader in the local vans and trucks market.
Founded over 60 years ago, Buchbinder is a well-established company in Germany, with an extensive network of 152 stations of which 18 airport stations and an average fleet in excess of 20,000 vehicles.
It is the fifth largest car rental company in the market with a solid positioning as a low cost car rental operator, as well as a leading position in the vans and trucks segment.
Buchbinder is also a market leader in Austria and is present in Hungary and Slovakia.
Caroline Parot, chief executive, Europcar Group, said: “The acquisition of Buchbinder is a major strategic step for the Europcar Group as it will enable us to become the number one player in both Germany and Austria, will reinforce our presence in the SME business segment and will significantly boost both our low cost and vans and trucks businesses in those countries.
“We are pleased to welcome an experienced management team into the Group.
“Konrad Altenbuchner and his team are staying in the business and we look forward to working together with them on the integration of Buchbinder into the Europcar Group.
“This combination of our two complementary businesses will not only create a new market leader but is also expected to deliver significant cost and revenue synergies for the whole group, allowing us to target a profitability for the combined business in line with our Ambition 2020.
In 2016, Buchbinder Group generated revenues of around €200 million.
The company has a well-diversified business model, a large customer base with a strong focus on small- and medium-sized enterprises and a renowned brand praised by local customers for the quality of its service.
The acquisition of Buchbinder will significantly boost Europcar’s nascent low-cost business in Germany and the strength of the Buchbinder brand will bring an opportunity to source further into the large pool of German and Austrian travellers in order to grow Europcar’s low cost business in southern Europe.
In addition, the combination of Buchbinder and Europcar Germany’s vans and trucks businesses will not only create a market leader but more importantly act as a core pillar to drive the vans and trucks expansion strategy across the Group.
The acquisition is subject to customary conditions precedent, including the approval of antitrust authorities, and is expected to close in the second half of the year 2017.
Konrad Altenbuchner, managing director, Buchbinder, said: “As a combined entity, we believe Buchbinder and the Europcar Group can provide a more comprehensive range and as a result even better services to our customers.
“I am delighted about this opportunity to strengthen the Buchbinder brand in the future and know that I can count on the support of all the employees of the Buchbinder Group to continue to spread the Buchbinder philosophy.”