Republic Industries To Acquire Spirit Rent-A-Car; And Forms Rental Car Division
23 April 1997
Republic Industries To Acquire Spirit Rent-A-Car; And Forms Rental Car Division
FORT LAUDERDALE, Fla., April 23 -- Republic Industries, Inc.
announced today that it has signed a definitive agreement to
acquire Spirit Rent-A-Car, Inc. of Solon, Ohio in exchange for approximately
$80 million, payable in Republic common stock. The transaction is to be
accounted for as a pooling of interests and is subject to customary
conditions, including government approval.
Spirit Rent-A-Car is the fourth largest insurance replacement rental car
company in the United States, providing rental vehicles to customers whose
permanent vehicles are being repaired or replaced. The company has
103 rental offices in 11 states.
As part of the transaction, Edward D. Hammer, 40, President of Spirit
Rent-A-Car and Richard Brindisi, 44, Executive Vice President will enter into
long-term employment agreements with Republic and will assume broader
executive management roles in the insurance replacement business.
Commenting on the proposed acquisition, Steven R. Berrard, President and
Co-Chief Executive Officer of Republic, said, "The addition of Spirit,
combined with National and Alamo, gives Republic a strong and rapidly growing
presence in the insurance replacement and local rental segments of the
automobile rental industry. We are pleased to welcome Ed Hammer, Rick
Brindisi and the entire Spirit management group to the Republic team. These
individuals have many years of experience in the insurance replacement rental
market and will make an important contribution to our success."
Spirit President Edward D. Hammer said, "This business combination is a
true synergistic fit. We at Spirit look forward to being able to leverage
Spirit's capabilities through Alamo, National and Republic's other automotive
businesses to even better serve the insurance industry."
Republic also announced today that the company has formed a Rental Car
Division, which will consist of its National Car Rental, Alamo Rent-A-Car and
Spirit Rent-A-Car units. William E. Lobeck will become President of the
division. Mr. Lobeck's primary responsibility will be to add shareholder
value to Republic by leading the integration of Alamo, National and its
insurance replacement business.
Mr. Lobeck is President and Chief Executive Officer of National Car
Rental Systems, Inc. He has a 30-year history in the automotive industry. A
former President of Thrifty Rent-A-Car, Mr. Lobeck was also President of
Pentastar Transportation Group, Inc., a subsidiary of Chrysler Corporation,
which owned and operated Snappy Car Rental, Dollar Rent A Car and General
Rent-A-Car. He was one of three partners who acquired National from General
Motors Corporation in June, 1995 and has served as President and CEO of that
company since. Republic acquired National in February, 1997.
Republic Industries, Inc. is a diversified holding company with
subsidiaries operating in the automotive retailing and rental, solid waste
services, and electronic security industries. Republic owns the largest chain
of new car dealerships in the United States and is building a nationwide chain
of used car megastores which it operates under the AutoNation USA brand name.
The company also owns National Car Rental
Systems, Inc. and Alamo Rent-A-Car, Inc. In addition, Republic owns many of
the premier solid waste services and electronic security services companies in
America, which operate under their regionally known business names.
SOURCE Republic Industries, Inc.
CONTACT: Jim Donahue, Republic Industries, 954-713-5208