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 consummated.
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 press release.
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.
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Franchise Services of North America Inc.