Eldan Car Rental, owned by chairman and CEO Yosef Dahan, signed an agreement last night to acquire its competitor, Europcar. For the past three years, Europcar has been owned in equal shares by Volkswagen importer Champion Motors Israel, Suzuki and Chrysler importer Automotive Equipment Group, and Fiat importer Mediterranean Car Agency.
Europcar has greatly reduced its car rental business recently, after suffering heavy losses, to focus instead on leasing. Europcar currently has a fleet of 4,000 vehicles and 105 employees.
Eldan will buy Europcar's fleet, leasing customers, and the Israeli rights to the Europcar and Reliable brands.
The amount of the deal, including the assumption of Europcar's debts by Eldan, was not disclosed; however industry sources believe that the $60 million value of Europcar's fleet will offset its debt. They believe that Eldan will pay only a few million dollars for Europcar.
Industry sources believe that Europcar's former owners will probably open independent car-leasing businesses of their own after the sale.
The Antitrust Authority must approve the deal after which Eldan will have a fleet of over 18,000 vehicles.
Published by Globes [online] - www.globes.co.il - on March 30, 2004