Thrifty Australia Acquired in Joint Venture Purchase

Thrifty Australia has today announced that NRMA Motoring & Services and Thrifty Managing Director, John Walker, have together acquired 100% of the company from Mitsubishi Motors Australia Limited (MMAL).

NRMA has acquired a 75% stake in the company and Mr Walker a 25% stake.  Mr Walker will remain Managing Director of Thrifty Australia and be responsible for day-to-day operation of the business.

Completion of the acquisition is expected to take place within the next two weeks, subject to certain conditions.

The deal valued at in excess of $30 million, represents a combination of purchase consideration, debt forgiveness by Mitsubishi and capital for business expansion.

Under its new all Australian ownership, Thrifty Australia will become the largest Australian owned Car and Truck Rental Company in the domestic market.

The Board will comprise NRMA President Alan Evans, CEO, Tony Stuart, Director Kyle Loades, Mr Walker and an independent non-executive Director with relevant industry experience who will be appointed shortly.

According to Mr Walker, the acquisition will allow for significant consolidation and growth opportunities for Thrifty Australia.

?Within the confines of our previous ownership, the full potential of the Thrifty Australia business was not being fulfilled.  This joint venture acquisition will bring stability to the company and help to strengthen the brand? Mr Walker said.

?We have set demanding target for the Thrifty business and are committed to delivering the best service possible to our customers.?

NRMA CEO, Tony Stuart, said the acquisition had been made as part of NRMA´s strategy to diversify its investment portfolio in areas that are relevant to its member base

?This investment makes good business sense for NRMA partly because of the great synergies between the two companies,? Mr Stuart said.   

?The combination also presents a significant opportunity for NRMA to enhance member value for its nearly two million members and complements our services in travel, touring and hospitality - including the Travelodge chain of hotels.

?Our members have told us that they want services and benefits from NRMA that that go beyond roadside assistance. Now, NRMA can travel with them from the minute they get in the car to when they check in to their hotel or other accommodation.?

Under its new ownership, Thrifty Australia will have the resources to substantially expand the size and range of its fleet, all of which will have a minimum of ANCAP four-star rating. Currently the fleet of Thrifty Australia and its licensees comprises around 10,000 vehicles in total. Under its new ownership, Thrifty Australia will be purchasing about 5,000 vehicles a year.

Mr Walker said, ?We will continue a supply contract with Mitsubishi, but will also source vehicles through other suppliers.  The capability to purchase via a range of suppliers means that we will be able to offer our customers more choice and ultimately better more consistent service.?

Growth is likely to come both organically and through licensee buy-backs. Such buybacks are part of an international trend on the part of car retail majors.

Another priority over the next six months for Thrifty Australia will be to launch the Dollar Rent A Car brand into the market.  On a global scale, Dollar is a significant car rental brand in its own right primarily within the leisure and tourism space.  Thrifty Australia holds the rights to the brand here and according to Mr Walker, its online launch will boost international opportunities in the business.

Thrifty Australia is small enough to have the flexibility to tailor its services to its current clients needs, but large enough to provide a comprehensive Australia-wide operation backed by the substantial global resources of Dollar Thrifty Automotive Group (the international licensor of the ?Thrifty? and ?Dollar? trademarks) - a NYSE listed company with annual sales of over US$1.5 billion and approx 8,000 employees world wide.

Thrifty Australia holds a long term license from DTAG for the ?Thrifty? and ?Dollar? brands for the Territory of Australia.