Avis Rent A Car Inc. Completes Acquisition of First Gray Line Corp. for $195 Million.PARSIPPANY, N.J.--(BUSINESS WIRE)--August 20, 1997--HFS Incorporated (NYSE NYSE See: New York Stock Exchange :HFS (Hierarchical File System) The file system used in the Macintosh. The first version, known as "Mac OS Standard," was introduced in 1985. HFS+, an enhanced version, came out in 1998 in preparation for the upcoming Mac OS X operating system. ) announced today that its subsidiary, Avis Rent A Car (ARAC), has completed its previously disclosed acquisition of First Gray Line Corporation for approximately $195 million in cash. Through its subsidiary, Grand Rent A Car, First Gray Line is the second largest Avis franchisee in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. , after ARAC, with 70 locations in southern California Southern California, also colloquially known as SoCal, is the southern portion of the U.S. state of California. Centered on the cities of Los Angeles and San Diego, Southern California is home to nearly 24 million people and is the nation's second most populated region, , Arizona and Nevada. The transaction is expected to be immediately accretive to ARAC's earnings. ARAC operates the second largest general use car rental business in the world. ARAC rents vehicles to business and leisure travelers through approximately 540 rental locations in both airport and downtown/suburban locations in the United States, Canada, Puerto Rico, the U.S. Virgin Islands, Argentina, Australia and New Zealand New Zealand (zē`lənd), island country (2005 est. pop. 4,035,000), 104,454 sq mi (270,534 sq km), in the S Pacific Ocean, over 1,000 mi (1,600 km) SE of Australia. The capital is Wellington; the largest city and leading port is Auckland. . During 1996, ARAC completed nearly 13 million rental transactions with a fleet averaging 174,000 vehicles and generated total revenue of approximately $1.9 billion, representing 77% of Avis System domestic revenues in 1996. HFS Incorporated is a global provider of real estate and travel services. HFS and CUC International (NYSE:CU) recently announced a merger of equals expected to close in the fall of 1997. CONTACT: HFS Incorporated Elliot Bloom, 973/952-8414 |
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