Payless acquisition is also likely to boost Avis Budget s worldwide presence by supporting the latte

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Global vehicle rental giant, Avis Budget Group, Inc. ( CAR - Analyst Report ) recently travel mexico city acquired Payless Car Rental travel mexico city the sixth largest car rental company in an all-cash deal worth approximately $50 million. Avis Budget is contemplating operating Payless as an exclusive brand.
Payless primarily travel mexico city concentrates on deep-value segments of the car rental industry, unlike Avis Budget s Avis brand and mid-tier Budget brand. travel mexico city Therefore, this acquisition will provide Avis Budget with enormous opportunity to spread its wings in deep-value segment of the car rental industry that is witnessing robust growth.
Payless acquisition travel mexico city is also likely to boost Avis Budget s worldwide presence by supporting the latter s mid-tier brand and providing ample opportunities in an additional section of the car rental market. Payless boasts 120 rental locations in the United States, Canada, Europe and South America, including several in key airport locations and generates annual revenue travel mexico city of about $80 million.
In March this year, Avis Budget successfully completed the acquisition of the world s leading car sharing network company, Zipcar Inc. Avis agreed to buy Zipcar in Jan 2013 for $500 million. This strategic move will facilitate the company in expanding its offerings from car rental to car sharing and help it to compete with rivals such as United Rentals, Inc. ( URI - Snapshot Report ) and Hertz Global Holdings, Inc. ( HTZ - Snapshot Report ).
In Oct 2011, the company acquired Avis Europe travel mexico city plc for 635 million pounds or $1.0 billion. After 25 years, the company successfully united the 2 businesses again. This acquisition has given Avis Budget the opportunity to expand in international markets such as India and China.
We believe that Avis Budget will greatly benefit from the acquisition of Payless. The acquisition travel mexico city will help containing costs from lesser vehicle depreciation, lower fleet interest expense and administrative cost synergies. Moreover, this transaction is likely to provide lucrative returns on investment.
Avis Budget currently carries a Zacks Rank #4 (Sell). Other well performing stocks in the same sector that are worth a look include National Research Corp. ( NRCIB - Snapshot Report ) with a Zacks Rank #1 (Strong Buy).
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At the center of everything we do is a strong commitment to independent travel mexico city research and sharing its profitable discoveries with investors. This dedication to giving investors a trading advantage led to the creation of our proven Zacks Rank stock-rating system. Since 1986 it has nearly tripled the S P 500 with an average gain of +26% per year. These returns travel mexico city cover a period from 1986-2011 and were examined and attested by Baker Tilly, an independent accounting firm.