Investindustrial seeks golden return with car rental firm

The firm will acquire 80% of holiday car rental operator Goldcar Spain with capital from Fund V

Investindustrial, a buyout firm focused on Southern Europe, has agreed to acquire an 80 percent stake in Goldcar Spain, a value holiday car rental company in Southern Europe, according to a statement.

The remaining 20 percent of the company’s shares will be held by the founders and the sellers. Investindustrial did not disclose financial details, but a source with knowledge of the transaction indicated that the deal values Goldcar at €500 million.

Investindustrial declined to comment beyond the statement.

Goldcar has a leading market share in Spain, and a “significant presence” in Italy, Portugal and Malta. The company manages a fleet of more than 32,000 vehicles across 53 offices, and has delivered “double digit growth” over the last five years, driven in large part by the expansion of its network, market share gains and penetration of new geographies. The company is projecting sales for 2014 of around €225 million with EBITDA of more than €100 million, according to Investindustrial.

“Investindustrial will continue to finance the double digit expansion over the next four-to-five years and will implement best practices and technology to further enhance the customer experience while making it more transparent,” said Andrea Bonomi, chairman of the Investindustrial advisory board.

Financing for the transaction was provided by Deutsche Bank and JP Morgan, with Lazard acting as financial advisor.

This investment is the third from Investindustrial Fund V, which closed on its hard-cap of €1.25 billion in April 2013. In December 2012, the firm invested €190 million for a 37.5 percent stake in British luxury carmaker Aston Martin in a deal valuing the company at €940 million, while in September of this year the firm acquired an 80 percent stake in Italian lighting company Flos in a deal valuing the company at around €400 million.