U.K. Court OKs Steps for Sale of RAC Motoring Services

8 July 1998

U.K. Court Approves Requisite Steps for Sale of RAC Motoring Services to Cendant

    STAMFORD, Conn. and PARSIPPANY, N.J.--July 8, 1998--Cendant Corporation reported today that the U.K. Court has approved the reorganization within the RAC group companies that must be implemented before the Company can proceed with its previously announced acquisition of RAC Motoring Services ("RACMS") for a total of 450 million pounds, or approximately $737 million, in cash.
    Commenting on the Court's decision, Cendant Vice Chairman, Stephen P. Holmes, said: "We are pleased that the sale of RACMS to Cendant can now proceed as planned, following approval by regulatory authorities in the U.K."
    Cendant is the world's premier provider of consumer and business services. Cendant operates in three principal segments: Alliance Marketing, Travel and Real Estate Services. In Alliance Marketing, Cendant provides access to travel, shopping, auto, dining, and other services. In Travel Services, Cendant is the leading franchisor of hotels and rental car agencies worldwide; the premier provider of vacation exchange services; a leading fleet management company through PHH; the UK's largest private car park operator through NCP, and a leading motorist assistance group in the UK through Green Flag. In Real Estate Services, Cendant is the world's premier franchisor of residential real estate brokerage offices, a major provider of mortgage services to consumers and a global leader in corporate employee relocation. Headquartered in Stamford and Parsippany, the company has more than 40,000 employees, operates in over 100 countries and makes approximately 100 million customer contacts annually.
    Cendant serves the U.K. auto and travel market through PHH, NCP and Green Flag, as well as its alliance marketing and RCI units.
    Cendant's Alliance Marketing division also markets a variety of value-added membership programs in Europe. Since acquiring its European licensing rights in 1996, the Company has more than doubled its international membership every year. Cendant currently serves over seven million international memberships through agreements with fourteen major European banks.
    Cendant's RCI unit is the world's largest timeshare exchange company, with more than 2.4 million member families worldwide and 200,000 in the U.K. alone. Through RCI, timeshare owners can swap the weeks they own and spend a vacation at one of over 3,200 timeshare properties in 89 countries worldwide.
    RAC Motoring Services operates in three principal segments--The RAC, the U.K.'s second largest roadside assistance company with over 6 million associate members, including 2.7 million under fleet programs and car manufacturers warranty programs and 2.9 million direct individual members, and London Wall Insurance, a provider of auto warranty products. RAC Motoring Services also owns the British School of Motoring (BSM), the U.K.'s largest driving school company. Sales in 1997, adjusted for the acquisition of BSM, were approximately $500 million.