Rental firm Europcar ‘explores sale’
Europcar Mobility Group, one of Europe’s largest car rental agencies, is drawing interest from suitors including Apollo Global Management as it explores a potential sale of the company, people familiar with the matter said.
The company has reached out to private equity firms including Cerberus Capital Management as it starts gauging interest from potential buyers.
Europcar, which has a market value of €647m, is working with advisers as it considers selling part or all of the business, according to the sources. In Ireland, Europcar also owns GoCar.ie.
Shares of Europcar jumped as much 9.4% in Paris trade and ended 5.75% higher on the day. No final decisions have been made and an agreement might not be reached, the people said.
Representatives for Europcar didn’t immediately respond to requests for comment. Representatives for Apollo and Cerberus declined to comment.
Shares of Europcar lost about three-quarters of their value since peaking in September 2017. Its biggest shareholder, Eurazeo, said it’s conducting a strategic review of options for its 29.9% stake in Europcar.
The company has been hurt by falling UK tourist numbers and overall economic malaise in continental Europe.
Last month, it reported third-quarter results that missed analysts’ forecasts and lowered its outlook for the rest of the year. Europcar operates through more than 3,500 locations in more than 140 countries.
It agreed this month to buy independent US rival Fox Rent A Car to help it grow in America.
