Facebook Twitter LinkedIn Google Plus RSS

Avis acquires Payless Car Rental in $50 million cash deal

By ,

Avis Budget Group, of Parsippany, announced today it has acquired Payless Car Rental in an all-cash deal valued at approximately $50 million.

According to an announcement from Avis, Payless is the sixth-largest car rental company in North America, and generates some $80 million in annual revenue.

Avis said in its announcement that its interest in St. Petersburg, Fla.-based Payless comes from the company’s presence in the deep-value segment of the marketplace, and will complement Avis’ premium brand and its mid-tier Budget business.

Payless, which was founded in 1971, will bring about 120 rental locations to Avis in the United States, Canada, Europe and South America.

It’s been a busy time for the two car-rental giants who are presently based in New Jersey. Avis got into a bidding battle with its chief competitor, Hertz Global Holdings, of Park Ridge, for Dollar Thrifty Automotive Group. Last week, the Federal Trade Commission gave its final approval to Hertz’s $2.6 billion takeover of the Tulsa, Okla. company.

Hertz said in May it would be relocating its headquarters to Florida.

Avis said in its announcement it intends to operate Payless as a separate brand, but said it will draw cost savings as a result of lower vehicle depreciation, reduced fleet interest expense and administrative cost overlap.

More From This Industry

Write to the Editorial Department at editorial@njbiz.com

Leave a Comment


Please note: All comments will be reviewed and may take up to 24 hours to appear on the site.

Post Comment
View Comment Policy


Subscribe to Our Newsletters!
Click Here to Subscribe for Free Now!