Franchise Services of North America Inc. Announces Receipt of Final Consent Decree
TSX-V Trading Symbol: FSN
CALGARY, July 11, 2013 /PRNewswire/ - FRANCHISE SERVICES OF NORTH AMERICA INC. ("FSNA" or the "Company") (FSN.V) is pleased to announce that the Federal Trade Commission has issued the Final Consent Decree approving the Hertz/Dollar Thrifty transaction and the divestiture of Advantage Rent A Car ("Advantage") and certain other assets to the Company. While FSNA has operated Advantage and the divested assets since December 2012 under a temporary order, receipt of the final order completes the last step of the acquisition process for the company.
Tom McDonnell, the Company's Chairman and Chief Executive Officer, stated: "All of our team members and our partners have worked diligently through this transition and we are extremely pleased with completion of the acquisition process. We are making great progress in growing all of our brands. We are excited about new opportunities such as the launch of the Advantage/ Europcar partnership at the end of the summer."
FSNA is a publicly traded company listed on the TSX Venture Exchange. The Company and its subsidiaries own the following brands: Advantage Rent A Car, U-Save Car & Truck Rental®, U-Save Car Sales, Rent-A-Wreck of Canada, PractiCar, Auto Rental Resource Center ("ARRC"), Xpress Rent A Car and Peakstone Financial Services.
Advantage currently operates from 73 airport locations and five hotel locations in Hawaii and Las Vegas. With a fleet of approximately 24,000 cars, ranging from economy cars to SUVs, Advantage services the leisure segment of the rental car market operating in key domestic leisure destinations, including California, Florida, Texas, Colorado, Hawaii and Arizona. With the addition of the divested airports and the recently announced partnership with Europcar, the Company is expanding its focus on operating as the fourth largest car rental company in North America.
U-Save, together with its subsidiary ARRC, has over 1,100 locations throughout the United States and is one of North America's largest franchise car rental companies. U-Save currently services 28 airport markets in 11 different states and 7 countries.
Practicar Systems Inc. owns the rights to the Rent-AWreck® and the PractiCar® trademarks for all of Canada. The Rent-A-Wreck® system operates a network of 69 franchise locations from coast-to-coast in Canada, providing a range of vehicle rental, leasing and sales options to its customers. The Rent-A-Wreck® system has been in continuous operation in Canada since 1976.
Forward Looking Information
Certain statements made in this news release are forward-looking in nature, including statements concerning the completion and timing of the Private Placement, the anticipated use of the net proceeds of the Private Placement and statements made with respect to Advantage's operations, including expectations as to the number of locations and size of fleet. The closing of the Private Placement could be delayed if FSNA is not able to obtain the necessary regulatory and stock exchange approvals on the timelines it has planned. The Private Placement will not be completed at all if these approvals are not obtained or if some other condition to the closing is not satisfied. Accordingly, there is a risk that the Private Placement will not be completed within the anticipated time or at all. The words "may", "could", "should", "would", "expect", "intend", "estimate", "anticipate", "believe", or "outlook" and similar expressions often identify forward-looking information. By their nature, forward-looking statements require FSNA to make assumptions and are subject to inherent risks and uncertainties. The forward-looking statements contained in this news release are based on certain key expectations and assumptions made by FSNA. Although FSNA believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because FSNA can give no assurance that they will prove to be correct. FSNA's forward-looking statements are qualified in their entirety by these cautionary statements. In addition, the forward-looking statements are made only as of the date of this news release, and except as required by applicable securities law, FSNA undertakes no obligation to publicly update these forward-looking statements to reflect new information, subsequent events or otherwise.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE Franchise Services of North America Inc.