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Europcar moves up a gear with Goldcar purchase
Posted on Monday, 19 June 2017 10:13
France-headquartered car rental firm Europcar has announced plans to acquire Goldcar, its low-cost peer.
The consideration for the transaction has not been disclosed, but the buyer expects yearly savings of almost EUR 30.00 million by 2020 and increased earnings per share from the first full year following completion.
Closing is currently slated for the second half of this year, subject to the go ahead from antitrust authorities.
Europcar believes acquiring Goldcar will enable it to expand in the Mediterranean region, as well as in the leisure and low cost markets, particularly in Europe.
In addition, it will improve revenue prospects as a consequence of the buyer’s increased knowledge of the low-cost segment.
Chief executive Caroline Parot said the move will help the company achieve targets set in October 2016, namely annual revenue of at least EUR 3.00 billion and adjusted corporate earnings before interest, taxes, depreciation and amortisation margin of at least 14.0 per cent by the end of 2020.
The deal is not Europcar’s first this year; in May it picked up Danish firms Ostergaard Biler and Nordcar Finance.
This was followed by a takeover of German peer Buchbinder later that same month; that transaction is also expected to close in the second half of this year.
No financial details were disclosed for either transaction.
Goldcar operates 80 offices throughout Spain, Portugal, Italy, Mexico and France, among other countries.
The company’s fleet is over 50,000-strong.
According to Zephyr, the M&A database published by Bureau van Dijk, there have already been 25 deals targeting passenger car rental companies announced worldwide during 2017 to date.
The most valuable of these was worth USD 126.40 million and involved PAR Capital Management increasing its stake in Avis Budget Group from 1.7 per cent to 5.6 per cent.
Others targeted since the beginning of January include Hertz Global Holdings, Auto Ricci and DRB-HICOM Leasing.
© Zephus Ltd