Avis Budget Group Announces Agreement to Acquire Avis Europe

Avis Budget Group, Inc. CAR and Avis Europe plc have announced that they have reached agreement on the terms of the acquisition by Avis Budget of all outstanding shares of Avis Europe in exchange for 3.15 pounds in cash per Avis Europe share. The acquisition is scheduled to close in October 2011, subject to Avis Europe shareholder approval, court approval and regulatory clearances. Avis Europe is an independent publicly traded company that operates the Avis brand via a network of over 3,100 locations in 112 countries, through wholly-owned subsidiaries in 13 countries and through license arrangement in an additional 99 countries. Avis Europe also operates the Budget brand through 950 locations in 59 countries. The terms of the transaction value Avis Europe's ordinary equity at approximately 635 million pounds, or approximately $1.0 billion. Several of Avis Europe's shareholders have already committed to support the transaction. Avis Budget has received 'hard' irrevocable commitments from Avis Europe's majority shareholder, D'Ieteren, whose holdings represent approximately 60% of the share capital of Avis Europe as well as from the directors on Avis Europe's board. "This transaction represents an outstanding opportunity for Avis Budget, and the acquisition of a business that we have long sought to own," said Ronald L. Nelson, Avis Budget Group Chairman and Chief Executive Officer. "The transaction re-unites the global operation of the Avis and Budget brands under one corporate umbrella, and is both financially and strategically compelling. We expect the combination of our two companies will allow us to more effectively serve vehicle-rental customers worldwide, and to achieve operating synergies of more than $30 million a year. In addition, the acquisition will give Avis Budget an increased presence in rapidly-growing international markets, including India and China.