Republic Will Buy National Car Rental Firm
The company that owns Alamo Rent A Car is buying National Car Rental System Inc. for $600 million, a deal that would bring two of the nation’s five biggest auto rental chains into one garage.
Republic Industries Inc., run by former Blockbuster Entertainment chief H. Wayne Huizenga, would absorb $1.7 billion worth of National’s debt as part of the deal, announced Monday. The combined rental operations would displace Avis as the nation’s second-biggest auto chain.
Together, Alamo and National would put 225,000 cars on the street and generate annual revenue of $2.7 billion.
The deal is a particularly good combination for Huizenga, Republic’s chairman and chief executive. It would provide a ready supply of vehicles for his AutoNation USA, a chain of used-car superstores opened in October.
Wall Street appeared to like the deal. Republic shares rose $1.875 to close at $32.75 in Nasdaq trading. Closely held National is controlled by an investment group.
In addition to used-car sales, Huizenga has announced plans to buy Ed Mullinax Inc., the nation’s third-largest Ford dealer.
Inside the business of entertainment
The Wide Shot brings you news, analysis and insights on everything from streaming wars to production — and what it all means for the future.
You may occasionally receive promotional content from the Los Angeles Times.
