Avis Budget Group, Inc. recently announced that it has acquired a significant interest in Carey International Inc., a provider of chauffeured ground transportation services worldwide.
In connection with this transaction, Avis Budget invested approximately $60 million in cash and now owns approximately 45 percent of Carey's common stock. In addition, Avis Budget also obtained a one-year option to increase its ownership stake in Carey to approximately 80 percent.
Operating in 550 cities and 60 countries through its network of franchisees and alliance partners, Carey International brought in approximately $250 million in revenue in 2006.
Avis Budget Group funded its investment with cash on hand and the investment is not expected to have a material impact on fourth quarter 2007 results.