Fleet News

US giant launches bid for EuroDollar

AMERICAN conglomerate Republic Industries has launched a £95.1 million takeover bid for corporate car hire specialist EuroDollar. The board of EuroDollar has recommended shareholders accept the offer made by Republic, a $9 billion US conglomerate which already owns several car hire companies including Alamo Rent-A-Car, National Car Rental System, Spirit Rent-A-Car, Value Rent-A-Car and Snappy Car Rental.

If the takeover is successful it will create the largest single-owner rental group in the UK, with a combined car fleet of 23,500 vehicles - EuroDollar operates 15,500 and Alamo 8,000 - and a network of 143 locations between EuroDollar and Alamo. Republic has confirmed, however, that EuroDollar and Alamo will maintain separate brand identities and the current management team at EuroDollar will remain in place. Behind the scenes synergies in terms of reservations and fleet operations will be reviewed at a later date.

Steven Berrard, president and chief executive officer of Republic, said: 'The acquisition of EuroDollar provides Republic's automotive rental division with a strong presence and base for growth in Europe. At the same time, by sharing resources and information, EuroDollar, Alamo and National will benefit from the complementary activities of their respective US and European operations.'

In EuroDollar's June results the company expressed dissatisfaction at its current relationship with Dollar Rent A Car in the United States, and confirmed it was looking at alternatives. Republic meanwhile is looking to boost its European presence as it seeks to rival Hertz and Avis on the global stage.

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