Franchise Services of North America Inc. Provides An Update On Timing
Regarding its Agreement to Acquire Advantage® Rent-A-Car Business.
CALGARY, Oct. 18, 2012 /CNW/ - FRANCHISE SERVICES OF NORTH AMERICA INC.
("FSNA" or the "Company")(TSX-V: FSN) wishes to provide an update on
transaction timing further to its previous announcements of August 28, 2012
and September 6, 2012 relating to its agreement to acquire Simply Wheelz, LLC,
a Delaware limited liability company and the owner of the Advantage®
Rent-A-Car brand ("Advantage"), and certain other divested assets from Hertz
Global Holdings, Inc. ("Hertz") (NYSE: HTZ). Today Hertz announced that it
has agreed to extend the term of its timing agreement relating to its cash
tender offer to purchase all outstanding shares of the Dollar Thrifty
Automotive Group ("Dollar Thrifty") with the United States Federal Trade
Commission ("FTC") until 11:59 p.m. on November 16, 2012. The Company's
successful completion of the acquisition of Advantage and the other assets is
subject to a number of conditions, including completion of Hertz's acquisition
of Dollar Thrifty and there is no assurance that such acquisition will be
Details Regarding the Timing Agreement with the FTC
In its press release of today, Hertz provided the following detail on the
timing: "As previously announced, Hertz and the FTC staff entered into a
timing agreement whereby Hertz would not close the transaction prior to 11:59
p.m. on October 31, 2012 without the prior agreement of the FTC. The FTC has
not completed its review of the information provided by Hertz and Dollar
Thrifty and has requested an extension of time to review the transaction
beyond October 31, 2012. Accordingly, Hertz has agreed to extend the term of
the timing agreement and Hertz and Dollar Thrifty will not close the
transaction prior to 11:59 p.m. on November 16, 2012 without the prior
agreement of the FTC. Hertz and Dollar Thrifty will continue to assist the
FTC in its review of the relevant information and are continuing to work with
the FTC to address matters raised by the Commissioners and the staff. There
can be no assurance as to what actions the FTC may take in connection with the
proposed acquisition. There can also be no assurance as to whether the FTC
will consent to any request to close the transaction before November 16, 2012."
FSNA is a publicly traded company listed on the TSXV. The Company and its
subsidiaries own the following brands: U-Save Car & Truck Rental®, U-Save Car
Sales, Rent-A-Wreck of Canada, PractiCar, Auto Rental Resource Center
("ARRC"), Xpress Rent A Car and Peakstone Financial Services.
U-Save, together with its subsidiary ARRC, has over 1,100 locations throughout
the United States and is one of North America's largest franchise car rental
companies. Having primarily serviced the local market for the past 30 years,
the Company is expanding into the airport market with plans for the opening of
airport locations in the top 30 markets in the United States and the major
airports in Canada. U-Save currently services 28 airport markets in 11
different states and 7 countries. U-Save Car Sales is an expansion of the
U-Save brand into the car sales market, and provides goods and services to car
sales operators looking to affiliate with a national brand.
Practicar Systems Inc. (a wholly owned subsidiary of FSNA) owns the rights to
the Rent-A-Wreck® and the PractiCar® trademarks for all of Canada. The
Rent-A-Wreck® system operates a network of 68 franchise locations from
coast-to-coast in Canada, providing a range of vehicle rental, leasing and
sales options to its customers. The Rent-A-Wreck® system has been in
continuous operation in Canada since 1976.
Completion of the transaction is subject to a number of conditions in addition
to Hertz's acquisition of Dollar Thrifty, including TSX Venture Exchange
acceptance and approval by the Company's shareholders. The transaction cannot
close until all required approvals are obtained. There can be no assurance
that the transaction will be completed as proposed, or at all.
The TSX Venture Exchange has in no way passed upon the merits of the
transaction and has neither approved nor disapproved the contents of this
Neither TSX Venture Exchange nor its Regulation Services Provider (as that
term is defined in the policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this release.
on FSNA or any of its operating subsidiaries please contact:
Sandy Miller Franchise Services of North America Inc. (386) 238-7035
SOURCE: Franchise Services of North America Inc.
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CO: Franchise Services of North America Inc.
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-0- Oct/18/2012 19:43 GMT
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