Budget Group, Inc. and Storage USA, Inc. Sign Deal Finalizing Strategic Alliance
29 September 1999
Budget Group, Inc. and Storage USA, Inc. Sign Deal Finalizing Strategic Alliance
DAYTONA BEACH, Fla., Sept. 27 -- Budget Group, Inc.
, which owns Budget Rent a Car Corporation and Ryder TRS, Inc.,
announced today that it has signed agreements finalizing a strategic alliance
with Storage USA, Inc. .
The key components of the strategic alliance are as follows:
-- Affiliates of Storage USA Franchise Corp. and Budget Group, Inc. have
formed a multi-year joint venture, owned 50/50, for the purpose of
franchising new facilities under the "Budget Storage USA" brand as well
as converting existing Storage USA operators to the new brand. The
joint venture will be managed by Storage USA Franchise Corp.
-- Budget Group and Storage USA will share pre-qualified truck rental and
self-storage leads received from the companies' national reservation
centers. Calls made by customers who express an interest in
self-storage will be transferred to the Storage USA national
reservation center, and those interested in truck rental will be
transferred to Budget and Ryder TRS.
-- Storage USA will become a primary truck rental partner with Budget
Truck Rental and Ryder TRS.
-- Storage USA will change its signs to reflect the new Budget Storage USA
relationship at its company-owned facilities in California, Texas, and
Indiana on an agreed schedule over the next 12 to 18 months. Both
Budget and Storage USA have a strong market presence in each of these
areas.
Budget Group Chairman and CEO Sandy Miller said, "Through this alliance we
look to strengthen our presence in the local market by offering self-moving
products and truck rental services at self-storage locations and to grow our
local market distribution through the expansion of the new Budget Storage USA
franchise system. With the high percentage of consumers who need truck rental
services and self-storage, we will be able to target self-movers more
efficiently and serve more of their moving needs."
In anticipation of the closing, the companies have been exchanging leads
through Budget Group's reservation center in Carrollton, Texas, and last week
the Ryder TRS reservation center in Miami began sharing leads. This has
given both companies an opportunity to focus on the technical details,
tracking and employee training related to the lead transfer process.
Dean Jernigan, chairman and CEO of Storage USA, stated, "Our partnership
with Budget Group, a leader in the industry, provides tremendous synergies for
both companies. We know that 70 percent of our residential customers rent
self-storage due to a move. Through Budget Storage USA, we will now offer
consumers added convenience and the very best in truck rental and
self-storage. It's a winning combination."
Budget Group, Inc. is a global network of transportation related
businesses which includes Budget Rent a Car, the world's third largest car and
truck rental system, and Ryder TRS, the nation's second largest consumer truck
rental company. For more information, visit the company's Web site at
http://www.bgi.com .
Storage USA, Inc. is a fully integrated, self-administered and
self-managed real estate investment trust, which is engaged in the management,
acquisition, development, construction and franchising of self-storage
facilities. The Company owns, manages and franchises 500 facilities
containing 33.3 million square feet in 31 states and the District of Columbia.
For more information, visit Storage USA's Web site at http://www.sus.com .
Statements made in this press release that are not historical in nature
may include 'forward-looking statements' within the meaning of the federal
securities laws. It is important to note that these statements involve a
number of risks, uncertainties and other factors that could cause Budget
Group, Inc.'s actual results to differ materially from those projected in such
forward-looking statements. Additional information concerning such matters is
contained in the Company's Annual Report on Form 10-K for the year ended
December 31, 1998, and other documents subsequently filed by the Company with
the SEC, all of which are available from the SEC.