FRANCE - Eurazeo agrees to buy Europcar for EUR 3bn

Europcar is the leading European car rental firm. The Europcar network includes more than 2,900 rental agencies in over 145 countries and 5,200 employees. In 2005, with an average fleet in excess of 220,000 hire cars and vans and with close to seven million hire contracts, Europcar had revenues of EUR 1.28bn, up 9% versus 2004. Based on the terms of the agreement and taking into account the net debt at end December 2005 of EUR 1.82bn (pro-forma including an exceptional dividend payment before carrying out the transaction), Europcar’s enterprise value will be EUR 3.083m.

Patrick Sayer, president of the Eurazeo management board, declared: 'We are delighted to be acquiring Europcar, which, with an initial equity investment of close to EUR 900m, will be one of the more significant Eurazeo investments. This investment undertaken independently by Eurazeo is an important step for the company in view of its size and the considerable geographical reach of Europcar. It confirms our ability to carry out large, complex transactions in partnership with major European groups wishing to refocus on their core activities.'

Xavier Marin, member of the Eurazeo management board said: 'Europcar benefits from a number of key advantages which has allowed it to become the leading European car rental operator with the best operational performance: quality management, a well known brand, the reach of its network and the performance of its information systems. In addition, Europcar offers the greatest potential for development in new markets and through new partnerships. We look forward to starting work immediately with Europcar’s management to pursue this growth strategy.'

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• Buyouts
• France