Avis Buys Payless Car Rental

by William White | July 15, 2013 9:42 am

autos 300x277 Avis Buys Payless Car Rental[1]Avis Budget Group (CAR[2]) announced Monday, that it has expanded its fleet with the purchase of Payless Car Rental.

Avis acquired Payless for about $50 million[3] in cash, and expects to use the acquisition to expand it global presence and accelerate the company’s growth. Avis plans to operate Payless as a separate brand.

Payless was founded in 1971 and generates $80 million in annual revenue, reports The Wall Street Journal.

The acquisition of Payless will add 120 new locations[4] in the United States, Canada, Europe and South America to Avis’ global market.

Avis rival Hertz Global Holdings (HTZ[5]) announced in June that it plans to increase its locations to 12,000[6] in the coming years.

Avis also purchased hourly car-rental company Zipcar for $500 million[7] earlier this year.

CAR shares were up marginally as of Monday morning, continuing a 115% year-to-date run.

Endnotes:
  1. [Image]: http://investorplace.com/wp-content/uploads/2010/07/autos.jpg
  2. CAR: http://studio-5.financialcontent.com/investplace/quote?Symbol=CAR
  3. $50 million: http://online.wsj.com/article/BT-CO-20130715-703338.html?mod=googlenews_wsj
  4. 120 new locations: http://www.nasdaq.com/article/avis-budget-group-acquires-payless-car-rental-for-about-50-mln-20130715-00291
  5. HTZ: http://studio-5.financialcontent.com/investplace/quote?Symbol=HTZ
  6. 12,000: http://investorplace.com/2013/06/hertz-rentals-might-come-to-walgreens-lowes/
  7. $500 million: http://investorplace.com/2013/01/avis-buying-zipcar-in-500m-deal-shares-jump/

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