Franchise Services of North America Inc. Announces Receipt of Final Consent
CALGARY, July 11, 2013
TSX-V Trading Symbol: FSN
CALGARY, July 11, 2013 /PRNewswire/ - FRANCHISE SERVICES OF NORTH AMERICA INC.
("FSNA" or the "Company") (FSN.V) is pleased to announce that the Federal
Trade Commission has issued the Final Consent Decree approving the
Hertz/Dollar Thrifty transaction and the divestiture of Advantage Rent A Car
("Advantage") and certain other assets to the Company. While FSNA has operated
Advantage and the divested assets since December 2012 under a temporary order,
receipt of the final order completes the last step of the acquisition process
for the company.
Tom McDonnell, the Company's Chairman and Chief Executive Officer, stated:
"All of our team members and our partners have worked diligently through this
transition and we are extremely pleased with completion of the acquisition
process. We are making great progress in growing all of our brands. We are
excited about new opportunities such as the launch of the Advantage/ Europcar
partnership at the end of the summer."
FSNA is a publicly traded company listed on the TSX Venture Exchange. The
Company and its subsidiaries own the following brands: Advantage Rent A Car,
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.
Advantage currently operates from 73 airport locations and five hotel
locations in Hawaii and Las Vegas. With a fleet of approximately 24,000 cars,
ranging from economy cars to SUVs, Advantage services the leisure segment of
the rental car market operating in key domestic leisure destinations,
including California, Florida, Texas, Colorado, Hawaii and Arizona. With the
addition of the divested airports and the recently announced partnership with
Europcar, the Company is expanding its focus on operating as the fourth
largest car rental company in North America.
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. U-Save currently services 28 airport markets in 11 different states
and 7 countries.
Practicar Systems Inc. owns the rights to the Rent-AWreck® and the PractiCar®
trademarks for all of Canada. The Rent-A-Wreck® system operates a network of
69 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.
Forward Looking Information
Certain statements made in this news release are forward-looking in nature,
including statements concerning the completion and timing of the Private
Placement, the anticipated use of the net proceeds of the Private Placement
and statements made with respect to Advantage's operations, including
expectations as to the number of locations and size of fleet. The closing of
the Private Placement could be delayed if FSNA is not able to obtain the
necessary regulatory and stock exchange approvals on the timelines it has
planned. The Private Placement will not be completed at all if these approvals
are not obtained or if some other condition to the closing is not satisfied.
Accordingly, there is a risk that the Private Placement will not be completed
within the anticipated time or at all. The words "may", "could", "should",
"would", "expect", "intend", "estimate", "anticipate", "believe", or "outlook"
and similar expressions often identify forward-looking information. By their
nature, forward-looking statements require FSNA to make assumptions and are
subject to inherent risks and uncertainties. The forward-looking statements
contained in this news release are based on certain key expectations and
assumptions made by FSNA. Although FSNA believes that the expectations and
assumptions on which the forward-looking statements are based are reasonable,
undue reliance should not be placed on the forward-looking statements because
FSNA can give no assurance that they will prove to be correct. FSNA's
forward-looking statements are qualified in their entirety by these cautionary
statements. In addition, the forward-looking statements are made only as of
the date of this news release, and except as required by applicable securities
law, FSNA undertakes no obligation to publicly update these forward-looking
statements to reflect new information, subsequent events or otherwise.
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.
SOURCE Franchise Services of North America Inc.
For further information on FSNA or any of its operating subsidiaries please
Thomas P. McDonnell, III
Franchise Services of North America Inc.
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