Avis Europe set for £636m return

CAR hire giant Avis Budget is to buy its European counterpart in a £636 million deal that reunites the two businesses after 25 years.
By The Newsroom
Published 14th Jun 2011, 10:58 BST

The swoop for Avis Europe, which operates the Avis and Budget brands in the UK as well as Europe, Africa and the Middle East, already has the support of Avis Europe’s major shareholder, Belgium-based motoring group D’Ieteren.

Avis Europe separated from Avis in 1986 and tripled in value over the following three years before reverting to private ownership under D’Ieteren, General Motors and Avis. It floated on the London Stock Exchange for the second time in 1997, with D’Ieteren remaining a major shareholder.

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Avis Budget said today’s proposed deal reunited the global operation of the Avis and Budget brands and increased the opportunities for targeting emerging markets such as India and China.

Chairman and chief executive Ronald Nelson said: “This transaction represents an outstanding opportunity for Avis Budget, and the acquisition of a business that we have long sought to own.”

In 1946, Warren Avis opened the world’s first airport car rental location at Willow Run Airport, Detroit, with just three cars on the fleet. It founded its Europe, Africa and Middle East division in 1965.

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