Avis Budget Group to buy Avis and Budget licensee for Norway, Sweden and Denmark
The licensee being acquired operates both the Avis and Budget brands at major locations throughout the region including Oslo, Stockholm, Copenhagen and Sweden's Arlanda and Goteberg airports.
"The Scandinavian territory represents one of our larger licensee acquisition opportunities and is consistent with our core strategic initiative of expanding our global footprint," said Ronald L. Nelson, Avis Budget Group Chairman and Chief Executive Officer. "Along with the United Kingdom, it will be managed as part of a newly formed Northern unit within the EMEA region."
The acquisition is expected to add more than $100 million of annual revenue and approximately $10 million of Adjusted EBITDA to Avis Budget Group, after synergies and in addition to the royalties that the licensee was paying to Avis Budget Group. The acquisition is scheduled to close in first quarter 2015, subject to customary closing conditions. ■