Europcar Group Accelerates Its Penetration of the Vans & Trucks and Low Cost Segments with the Acquisition of Buchbinder

SAINT-QUENTIN EN YVELINES, France--()--Regulatory News:

Europcar Group (Paris:EUCAR), the European leader in vehicle rental services and a major player in mobility markets, announces today the signing of an agreement to acquire Buchbinder, one of the largest car rental companies in Germany. Germany is the largest country for the Europcar Group in terms of revenues and through the acquisition of Buchbinder, the Group intends to significantly improve its penetration of the low cost segment and become the market leader in the local vans & trucks market.

Founded over 60 years ago, Buchbinder is a well-established company in Germany, with an extensive network of 152 stations of which 18 airport stations and an average fleet in excess of 20,000 vehicles. It is the 5th largest car rental company in the market with a solid positioning as a low cost car rental operator, as well as a leading position in the vans & trucks segment. Buchbinder is also a market leader in Austria and is present in Hungary and Slovakia. In 2016, Buchbinder Group generated revenues of around €200 million.

The company has a well-diversified business model, a large customer base with a strong focus on small- and medium-sized enterprises (SME) and a renowned brand praised by local customers for the quality of its service.

The acquisition of Buchbinder will significantly boost Europcar’s nascent low cost business in Germany and the strength of the Buchbinder brand will bring an opportunity to source further into the large pool of German and Austrian travellers in order to grow Europcar’s low cost business in southern Europe.

In addition, the combination of Buchbinder and Europcar Germany’s vans and trucks businesses will not only create a market leader but more importantly act as a core pillar to drive the vans and trucks expansion strategy across the Group.

Finally, Buchbinder’s best practical expertise on fleet remarketing will deliver further opportunities across the Europcar Group.

The acquisition is subject to customary conditions precedent, including the approval of antitrust authorities, and is expected to close in the second half of the year 2017.

The transaction, which is expected to generate significant synergies in the medium term, is based on a post-synergy Adjusted Corporate EBITDA multiple slightly above 5x.

For Caroline Parot, Chief Executive Officer of Europcar Group:

The acquisition of Buchbinder is a major strategic step for the Europcar Group as it will enable us to become the #1 player in both Germany and Austria, will reinforce our presence in the SME business segment and will significantly boost both our low cost and vans & trucks businesses in those countries.

We are pleased to welcome an experienced management team into the Group. Konrad Altenbuchner and his team are staying in the business and we look forward to working together with them on the integration of Buchbinder into the Europcar Group. This combination of our two complementary businesses will not only create a new market leader but is also expected to deliver significant cost and revenue synergies for the whole Group, allowing us to target a profitability for the combined business in line with our Group’s Ambition 2020.

This landmark transaction confirms the major role we want to play in our industry’s European consolidation process. After the recent transactions with our Irish and Danish franchisees and the conclusion of this transaction, we still have a substantial pipeline of identified acquisition opportunities that we are actively pursuing in all of our business units. We stand ready to accelerate the pace of our previously announced acquisition plan to generate at least 500 million euros of additional revenues by 2020 if such opportunities materialize in the short or medium term. In that context, we intend to actively manage the balance sheet to maintain an efficient and resilient capital structure”.

For Konrad Altenbuchner, Shareholder & Managing Director of Buchbinder:

As a combined entity, we believe Buchbinder and the Europcar Group, can provide a more comprehensive range and as a result even better services to our customers. I am delighted about this opportunity to strengthen the Buchbinder brand in the future and know that I can count on the support of all the employees of the Buchbinder Group to continue to spread the Buchbinder philosophy”.

Conference Call with Analysts and Investors

Caroline Parot, Chief Executive Officer and Ken Mc Call, Deputy CEO, will host a conference call today at 2pm CET.

Webcast:
https://pgi.webcasts.com/starthere.jsp?ei=1148729

Conference call dial-in:
France: +33 (0)1 76 77 22 74
Germany: +49 (0)69 2222 13420
UK: +44 (0)330 336 9105
USA: +1 719-325-2202

A replay of the conference call as well as all documents relating to this publication will be available online on Europcar’s investor website: http://finance.europcar-group.com/

Investor Calendar

H1 2017 Results       26 July 2017
Q3 2017 Results 9 November 2017

Forward-looking statements

This press release contains forward-looking information and statements regarding the acquisition of Buchbinder regarding the objectives, results, effects and timing of the transaction, as well as other statements that are estimates reflecting Europcar Group's best judgment on the basis of the information currently available. Such forward-looking information and statements may be identified by the use of the future, conditional and such terms as "believe", "expect", "may", "estimate", "intend", " consider ", “anticipate”, as well as other similar terms. Investors and shareholders are cautioned that such forward-looking information and statements may be affected by numerous risks and uncertainties, many of which are difficult to predict and are generally beyond Europcar Group's control. Such risks or uncertainties could result in significantly different and more adverse outcomes or developments than those expressed or projected, including implicitly, in such forward-looking information or statements. These risks and uncertainties include those discussed or identified in the documents filed by Europcar Group with the AMF. Europcar Group undertakes no obligation to update publicly any of its forward looking statements, whether as a result of new information, future events or otherwise.

About Europcar Group

Europcar Group is listed on Euronext Paris. Europcar is the European leader in vehicle rental service and is also a major player in mobility markets. Active in more than 130 countries and territories, including nine subsidiaries in Europe and two in Australia and New Zealand, Europcar serves customers through an extensive vehicle rental network comprised of its wholly-owned subsidiaries as well as sites operated by franchisees and partners.The group operates mainly under the Europcar®, InterRent® and Ubeeqo® brands. Customer satisfaction is at the heart of the group's mission and all of its employees, this commitment fuels the continuous development of new services. The Europcar Lab, based in Paris, was created to better grasp tomorrow’s mobility challenges through innovation and strategic investments, such as Ubeeqo, E-Car Club or Brunel.

Further details on our website:
europcar-group.com

Contacts

Europcar
Press relations
Nathalie Poujol, +33 1 30 44 98 82
europcarpressoffice@europcar.com
or
Europcar
Investor relations
Olivier Gernandt, +33 1 30 44 91 44
olivier.gernandt@europcar.com
or
Havas Paris
Fabien Aufrechter, +33 1 58 47 93 71
fabien.aufrechter@havasww.com

Contacts

Europcar
Press relations
Nathalie Poujol, +33 1 30 44 98 82
europcarpressoffice@europcar.com
or
Europcar
Investor relations
Olivier Gernandt, +33 1 30 44 91 44
olivier.gernandt@europcar.com
or
Havas Paris
Fabien Aufrechter, +33 1 58 47 93 71
fabien.aufrechter@havasww.com