Brazilian-based rental car companies Locamerica (Companhia de Locacao das Americas) and Unidas announced on Thursday (Dec.28) a cash and stock merging deal, resulting in what will be Brazil’s second-largest car rental company (the first one being Localiza).
After the deal is approved by CADE (Administrative Council for Economic Defense), the new firm Locamerica-Unidas, will have a fleet of more than 100,000 vehicles and 234 rental car offices in Brazil.
Unidas is a franchisee of Enterprise, owner of U.S. rental car brands Alamo, Enterprise and National. The firm had attempted to hold an initial public offering some months ago, but called off the transaction due to weak investor demand.
The current Locamerica’s CEO Luis Fernando Porto and his partner, Sergio Resende, founded the company in 1993 under the name of Locarvel,with a fleet of 16 vehicles. Five years later, Locarvel began acquiring small and medium-sized companies in Belo Horizonte, Brasília and Rio de Janeiro, expanding its portfolio of corporate clients. In 2002, Locarvel opened branches in São Paulo, Curitiba, Porto Alegre, Cuiabá, Fortaleza, Salvador and Vitória.