Franchise Services of North America Inc. Provides Transaction Update and Announces Streamlining of Management
CALGARY, Dec. 7, 2012 /CNW/ - FRANCHISE SERVICES OF NORTH AMERICA INC. ("FSNA" or the "Company") (TSX-V: FSN) wishes to provide an update on the previously announced agreement to acquire (the "Acquisition") Simply Wheelz, LLC, a Delaware limited liability company and the owner of the Advantage® Rent-A-Car brand ("Advantage"), and certain other divested assets (together, the "Assets") from Hertz Global Holdings, Inc. (NYSE: HTZ). Closing of the acquisition of Advantage by a subsidiary of Macquarie Capital is scheduled to take place on Wednesday, December 12, 2012, with the acquisition of remaining Assets to occur in 2013. The Acquisition of Advantage by FSNA is expected to close in the first quarter of 2013 and is more fully described in the appendix to the Company's press release dated August 28, 2012.
In contemplation of the Acquisition, the Company's board of directors has decided to streamline the Company's executive management, effective today. Thomas P. McDonnell, III, formerly the Company's Co-Chief Executive Officer and Co-Chairman will be the Company's sole Chief Executive Officer and Chairman. Mr. Sanford Miller, the former Co-Chief Executive Officer and Co-Chairman, will not continue in an executive capacity with the Company but will continue to serve as a director.
Commenting on the recent developments, Mr. McDonnell said, "I am excited by this new role at the Company and look forward to completing the acquisition of Advantage."
FSNA is a publicly traded company listed on the TSXV. The Company and its subsidiaries own the following brands: 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.
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. Having primarily serviced the local market for the past 30 years, the Company is expanding into the airport market with plans for the opening of airport locations in the top 30 markets in the United States and the major airports in Canada. U-Save currently services 28 airport markets in 11 different states and 7 countries. U-Save Car Sales is an expansion of the U-Save brand into the car sales market, and provides goods and services to car sales operators looking to affiliate with a national brand.
Practicar Systems Inc. (a wholly owned subsidiary of FSNA) owns the rights to the Rent-A-Wreck® and the PractiCar® trademarks for all of Canada. The Rent-A-Wreck® system operates a network of 68 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.
Completion of the transaction is subject to a number of conditions, including TSX Venture Exchange acceptance and approval by the Company's shareholders. The transaction cannot close until all required approvals are obtained. There can be no assurance that the transaction will be completed as proposed, or at all.
The TSX Venture Exchange has in no way passed upon the merits of the transaction and has neither approved nor disapproved the contents of this press release.
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.