UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
WASHINGTON,
D.C. 20549
FORM
8-K
CURRENT
REPORT
PURSUANT
TO SECTION 13 OR 15(D) OF THE
SECURITIES
EXCHANGE ACT OF 1934
Date
of
report (Date of earliest event reported): October
24, 2007 (October 23, 2007)
Avis
Budget Group, Inc.
(Exact
name of registrant as specified in its charter)
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Delaware
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1-10308
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06-0918165
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(State
or Other Jurisdiction of Incorporation)
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(Commission
File Number)
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(IRS
Employer Identification Number)
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6
Sylvan Way
Parsippany,
NJ
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07054
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(Address
of Principal Executive Offices)
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(Zip
Code)
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(973)
496-4700
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(Registrant’s
telephone number, including area code)
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N/A
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(Former
name or former address, if changed since last
report)
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Check
the
appropriate box below if the Form 8-K filing is intended to simultaneously
satisfy the filing obligation of the registrant under any of the following
provisions (see General Instruction A.2. below):
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o
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Written
communications pursuant to Rule 425 under the Securities Act (17
CFR
230.425)
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o
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Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
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o
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Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17
CFR
240.14d-2(b)
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o
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Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17
CFR
240.13e-4(c))
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Item
7.01 FD
Disclosure.
On
October
23, 2007 we issued a press release announcing our acquisition of an interest
in
Carey International, Inc. A copy of the press release is attached
hereto as Exhibit 99.1
and
is
incorporated herein by reference.
Item
9.01. Financial
Statements and Exhibits.
(d) Exhibits.
The
following exhibits are filed as part of this report:
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Exhibit
No.
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Description
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99.1
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Press
Release dated October 23, 2007
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SIGNATURES
Pursuant
to the requirements of the Securities Exchange Act of 1934, the registrant
has
duly caused this report to be signed on its behalf by the undersigned hereto
duly authorized.
AVIS
BUDGET GROUP,
INC.
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By:
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/s/ Jean
M. Sera
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Name:
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Jean
M. Sera
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Title:
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Senior
Vice President and Secretary
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Date:
October 24, 2007
EXHIBIT
INDEX
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Exhibit
No.
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Description
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99.1
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Press
Release dated October 23, 2007
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Press
Release
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AVIS
BUDGET GROUP ACQUIRES INTEREST IN
CAREY
INTERNATIONAL
Investment
in Leading Provider of Chauffeured Vehicles
Will
Extend Range of Services that Avis Budget Can Offer
to
Commercial and Leisure Travelers
PARSIPPANY,
N.J. – October 23, 2007– Avis Budget Group, Inc. (NYSE: CAR) announced
today that it has acquired a significant interest in Carey International Inc.,
the leading provider of chauffeured ground transportation services
worldwide. In connection with this transaction, Avis Budget Group
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, subject to certain conditions, which would likely include the
assumption or repayment of Carey’s existing indebtedness.
Carey
International, with approximately $250 million in revenue in 2006, is the market
share leader in the approximately $5 billion chauffeured ground transportation
category. Carey offers its customers consistently superior premium
service through the industry’s only franchise system. Carey operates
in 550 cities and 60 countries through its network of franchisees and alliance
partners.
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.
“With
this investment, Avis Budget Group expects to be able to offer corporate
customers and travel partners the most complete portfolio of local ground
transportation products and services available anywhere,” said Avis Budget Group
Chairman and Chief Executive Officer Ronald L. Nelson. “As the
world’s premier chauffeured services brand, Carey provides premium-quality
services across a broad geographic footprint, making it an ideal partner for
Avis Budget.”
Carey
International will continue to be led by its existing management team, including
President and Chief Executive Officer Gary L. Kessler and Executive Vice
President and Chief Financial Officer Mitchell J. Lahr, based out of Carey’s
offices in Washington, D.C. Carey’s existing investor group, led by
Chartwell Investments, continues to hold a majority ownership
position.
“We
are
tremendously excited about our new relationship with Avis Budget
Group,” Mr. Kessler said. “The opportunities for us to
leverage Avis Budget’s strong customer relationships, technological capabilities
and vehicle services expertise will allow us to enhance service delivery to
our
clients and strengthen our position as the leader in the chauffeured
transportation industry.”
About
Avis Budget Group, Inc.
Avis
Budget Group is a leading provider of vehicle rental services, with operations
in more than 70 countries. Through its Avis and Budget brands, the company
is
the largest general-use vehicle rental company in each of North America,
Australia, New Zealand and certain other regions. Avis Budget Group is
headquartered in Parsippany, N.J. and has more than 30,000 employees. For more
information about Avis Budget Group, visit
www.avisbudgetgroup.com.
About
Carey International Inc.
Carey
International is the world’s premier chauffeured vehicle service and innovative,
value-added transportation solutions provider with locations in 550 cities
and
60 countries. Since 1921, the Carey brand has represented
uncompromising reliability and impeccable professionalism, safety, security,
and
quality. Carey sets the standard for corporate sedan and limousine
services and state-of-the-art ground transportation through the chauffeured
transportation industry’s only franchise system. Carey provides a
full range of chauffeured vehicle and logistics services, including luxury
airport transport, road shows, special events, and tours. Certified
professional chauffeurs, a fleet of luxury vehicles and an industry-leading
quality assurance program help make Carey the clear industry
leader. Carey also has the only Meetings and Events division in the
industry, providing end-to-end event transportation and meeting management
services including planning, logistics, and on-site coordination. For
more information about Carey, please visit www.carey.com.
About
Chartwell Investments
Chartwell
Investments is a New York-based private equity firm that has completed over
$2.5
billion in transactions. Chartwell invests in middle market companies
with strong market positions, sound business models and meaningful growth
prospects. Chartwell currently has investments in Carey International
Inc., Richard Childress Racing, PPC Industries, Idaho Timber Corporation, and
Goober Drilling. For more information about Chartwell Investments,
visit www.chartwellinvestments.com.
Forward-Looking
Statements
Certain
statements in this press release constitute "forward-looking statements" within
the meaning of the Private Securities Litigation Reform Act of
1995. Such forward-looking statements involve known and unknown
risks, uncertainties and other factors which may cause the actual results,
performance or achievements of the Company to be materially different from
any
future results, performance or achievements expressed or implied by such
forward-looking statements. Statements preceded by, followed by or
that otherwise include the words "believes", "expects", "anticipates",
"intends", "projects", "estimates", "plans", "may increase", "may fluctuate"
and
similar expressions or future or conditional verbs such as "will", "should",
"would", "may" and "could" are generally forward-looking in nature and not
historical facts. Any statements that refer to expectations or other
characterizations of future events, circumstances or results are forward-looking
statements.
Various
risks that could cause future results to differ from those expressed by the
forward-looking statements included in this press release include, but are
not
limited to, Carey’s ability to meet its future earnings goals, the ability of
the two companies to achieve the desired synergies and our ability to
successfully implement our strategic goals related to, and to derive the
expected benefits from, our investment in Carey. Other unknown or
unpredictable factors also could have material adverse effects on Avis Budget
Group’s performance or achievements. In light of these risks,
uncertainties, assumptions and factors, the forward-looking events discussed
in
this press release may not occur. You are cautioned not to place
undue reliance on these forward-looking statements, which speak only as of
the
date stated, or if no date is stated, as of the date of this press
release. Important assumptions and other important factors that could
cause actual results to differ materially from those in the forward-looking
statements are specified in Avis Budget Group's Annual Report on Form 10-K
for
the year ended December 31, 2006 and Quarterly reports on Form 10-Q for the
quarters ended March 31, 2007 and June 30, 2007, included under headings such
as
"Forward-Looking Statements", “Risk Factors” and "Management’s Discussion and
Analysis of Financial Condition and Results of Operations". Except
for the Company's ongoing obligations to disclose material information under
the
federal securities laws, the Company undertakes no obligation to release
publicly any revisions to any forward-looking statements, to report events
or to
report the occurrence of unanticipated events unless required by
law.
Media
Contacts Investor
Contact
Avis
Budget
Group: Avis
Budget Group:
John
Barrows David
Crowther
(973)
496-7865
(973) 496-7277
Carey
International:
Stephanie
Seacord
(603)
772-1835
###