Avis to Close Zipcar Deal This Week - Analyst Blog
2013年3月12日 - 12:30AM
Zacks
Global vehicle rental giant, Avis Budget Group
Inc. (CAR) got the United Kingdom Office of Fair Trading’s
clearance for acquiring the world’s leading car sharing network
company, Zipcar Inc. (ZIP), on Mar 8, 2013. Both
the companies expect the acquisition to complete in this week.
The deal has also received a clean chit from other regulatory
bodies in United States and United Kingdom. On Feb 11 this year,
Avis Budget has successfully completed the waiting period under the
U.S. Hart-Scott-Rodino Antitrust Improvements Act of 1976.
Avis had agreed to buy Zipcar in Jan 2013 for a total value of
$500 million. This strategic move will facilitate the company in
expanding its offerings from car rental to car sharing and compete
with rivals such as United Rentals Inc. (URI) and
Hertz Global Holdings Inc. (HTZ).
To finance this deal, Avis completed a debt financing worth of
approximately $525 million on Mar 8. The new debt , which consists
of 2 components – senior notes and term loans -- carries a
weighted-average interest rate of 5.1%.
In the first part, Avis‘ subsidiary Avis Budget Finance plc has
closed the offering of its first ever Euro denominated senior notes
worth EURO 250 million (nearly $325 million), carrying an annual
interest rate of 6% and maturing at par in 2021.
In the second part, the company got a term-loan borrowing of
$200 million carrying an annual interest rate of 3.75% and due in
2019.
Avis Budget believes that the acquisition will generate an
annual synergy in the range of $50–$70 million. Further, we believe
that the transaction will lead to increasing revenues and reduce
costs by augmenting fleet utilization.
In the United States alone, car sharing is currently a lucrative
business worth nearly $400 million and it is growing rapidly in
other parts of the world. With over 760,000 members, Zipcar has
presence in 20 major cities of the U.S., Canada and Europe.
We believe that by capitalizing on Zipcar’s strong network along
with its leading-edge technology, Avis will definitely be able to
boost its top and bottom lines.
Zipcar is engaged in operating car sharing network, providing
self-service vehicles to members located in reserved parking spaces
throughout the neighborhoods where they live and work. The
company's vehicles are available for use through its reservation
system accessible by phone, internet or wireless mobile
devices.
Avis currently carries a Zacks Rank #4 (Sell).
AVIS BUDGET GRP (CAR): Free Stock Analysis Report
HERTZ GLBL HLDG (HTZ): Free Stock Analysis Report
UTD RENTALS INC (URI): Free Stock Analysis Report
ZIPCAR INC (ZIP): Free Stock Analysis Report
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Zipcar, Inc. (MM) (NASDAQ:ZIP)
過去 株価チャート
から 5 2024 まで 6 2024
Zipcar, Inc. (MM) (NASDAQ:ZIP)
過去 株価チャート
から 6 2023 まで 6 2024