TSX-V Trading Symbol: FSN
CALGARY, March 18, 2013 /CNW/ - FRANCHISE SERVICES OF NORTH AMERICA INC. ("FSNA" or the "Company") (FSN.V) announces that Adreca Holdings Corp. ("Adreca"), a subsidiary of
Macquarie Capital ("Macquarie Capital"), has completed one of the
scheduled acquisitions of additional on-airport and off-airport
concessions from Hertz Global Holdings, Inc. ("Hertz"). The additional
airport concessions are a result of the acquisition by Adreca of the
Advantage® Rent-A-Car brand ("Advantage") from Hertz in December 2012
and is more fully described in our press release of December 12, 2012.
As a result of the acquisition, Adreca opened new rental locations at
Pittsburgh International Airport (PIT) and Hilo International (ITO) as
an in-terminal operation, and has also moved pre-existing off-airport
operations at Raleigh-Durham International Airport (RDU) and Charlotte
Douglas International Airport (CLT) to in-terminal operations. Adreca's
acquisition of the remaining additional airports and certain other
divested assets from Hertz is expected to be completed by August 2013.
Adreca will be Hertz's sole divestiture partner in conjunction with the
dispositions required to be made by Hertz by the consent decree issued
by the United States Federal Trade Commission, previously detailed in
the Company's November 20, 2012 press release.
As previously described by the Company's August 28, 2012 press release,
FSNA and Adreca have entered into an agreement to merge a wholly-owned
subsidiary of the Company with Adreca (the "Merger"). FSNA and Adreca
are parties to a Management Services Agreement pursuant to which FSNA
provides Adreca with certain management services in respect of
Advantage and the other assets divested by Hertz pending closing of the
Commenting on the recent developments, Thomas P. McDonnell, III, the
Company's Chief Executive Officer and Chairman said, "We continue to
progress with the addition of these new locations and look forward to
expanding our footprint of in-terminal locations in new destinations to
service our existing and new customers. We also look forward to closing
the Merger, which we anticipate will occur during the second quarter of
this calendar year."
FSNA is a publicly traded company listed on the TSX Venture Exchange.
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
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 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.
Completion of the Merger is subject to a number of conditions, including
TSX Venture Exchange acceptance and approval by the Company's
shareholders. The Merger cannot close until all required approvals are
obtained. There can be no assurance that the transaction will be
completed as proposed, or at all.
Investors are cautioned that, except as disclosed in the circular of
FSNA to be prepared in connection with the Merger, any information
released or received with respect to the Merger may not be accurate or
complete and should not be relied upon. Trading in the securities of
FSNA should be considered highly speculative.
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 press release.
Certain statements made in this news release are forward looking in
nature, including statements made with respect to the Merger. 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, including the satisfaction of conditions to the
completion of the Merger. 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. There can be no assurance that the Merger will be completed
as proposed or at all. 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 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:
For further information on FSNA or any of its operating subsidiaries please contact:
Thomas P. McDonnell, III
Franchise Services of North America Inc.