Citroen's DS5. The maker is shoring up core operations in the face of a new European economic downturn.
With the threat of a recession steadily rising, one of Europe’s leading automakers has elected to sell off its rental-cars subsidiary to raise cash.
Enterprise Holdings will purchase PSA Peugot Citroen’s Citer SA and its Spanish subsidiary Atesa to for an undisclosed sum.
Through its regional subsidiaries, Enterprise Holdings owns and operates the National Car Rental brands, as well as its flagship Enterprise Rent-A-Car brand in North America. The company also operates the Enterprise Rent-A-Car brand in the UK. Meanwhile, with a fleet of approximately 30,000 vehicles, Citer SA has deep coverage through locations in main cities, railway stations and airports in France and Spain, two key European markets in which Citer ranks among the leading vehicle rental companies.
PSA Peugeot Citroën emphasized the strategic opportunity that the transaction represents for Citer, which will be able to step up its development while benefiting from Enterprise Holdings’ leadership, Enterprise officials said.
The transaction has received a positive endorsement of the union-dominated Works councils of PSA Peugeot Citroën and Citer SA. It is subject to regulatory approval and certain other customary closing conditions. The transaction should be completed by the end of 2011.
“With no overlap or duplication to our current operations in Europe, this will be a great strategic fit,” said Enterprise Holdings’ Chairman and CEO Andrew C. Taylor, whose family has owned and operated the company since1957. “The more than 1,000 employees at Citer and Atesa have built successful rental car operations in France and Spain, and we look forward to the prospect of welcoming them to our team,” Taylor said.
“It’s also important to note that more and more of our customers are asking us to expand our footprint in Europe,” Taylor continued. “Joining forces with Citer responds to those travelers’ needs and opens up new markets that are highly complementary to our existing European operations,” Taylor said.
Since entering Europe in 1994, the Enterprise Rent-A-Car operations have expanded rapidly, and now include 4,000 employees in the UK, Germany and Ireland. Today, the Enterprise network includes more than 200 branch offices in Ireland and Germany and, as the largest car rental business in the UK wth more than 360 branches located within five miles of 75% of the UK population. This acquisition further expands Enterprise Holdings’ European presence into France and Spain.
Alamo, Enterprise and National lead with more than one-third of all airport business in the U.S./ and Canada. With annual revenues of $14.1 billion and more than 70,000 employees, Enterprise Holdings owns and operates more than 1.2 million cars and trucks, making it he largest car rental company in the world measured by revenue, employees and fleet. In addition, the company’s annual revenues place it near the top of the travel industry, exceeding many airlines and most cruise lines, hotels, tour operators and online travel agencies. Ranked No. 15 on the Forbes “Top 500 Private Companies in America” list, Enterprise Holdings is owned by the Taylor family and headquartered in St. Louis.
Peugeot and Citroen sold 3.6 million vehicles worldwide in 2010, almost 40% of them outside Europe. As Europe’s second largest carmaker, it recorded sales.