H. Wayne Huizenga's Republic Industries has agreed to buy National Car Rental System Inc. for $600 million in stock in its second big acquisition in the car rental business.
Republic recently acquired Alamo Rent A Car and would control two of the five biggest car rental agencies with the National deal.The rental car companies fit into plans by Huizenga, Republic's chairman and chief executive, to make a mark in the automobile industry by renting, selling and servicing cars and selling auto accessories.
Alamo and National would provide a ready supply of vehicles for Huizenga's AutoNation USA, a chain of used-car superstores opened in October. It is expected to grow to 80 outlets within five years.
National's strength is in renting cars to businessmen and corporations, while Alamo puts more emphasis on serving vacationers.
National, based in Edina, Minn., has about 800 locations in the United States and Canada and affiliates in Latin America, Europe, Japan and the Caribbean. Its domestic fleet averages 100,000 vehicles.
About 80 percent of National's business is corporate and commercial rentals, said Republic spokesman Ron Castell.
"It's almost the opposite of Alamo, which is 75 percent leisure," he said. "They both really have different customer bases."
Late last year, Republic announced plans to purchase new car dealer Ed Mullinax Inc., the third-largest Ford dealer with five no-haggle Ford and Lincoln-Mercury outlets in South Florida and northeastern Ohio.
General Motors bought control of National in 1992 after it lost money for six years.
Fort Lauderdale-based Alamo courted National in 1995, but the automaker sold out to Santa Anna Holdings Inc., an investor group led by William Lobeck, former president of Chrysler's Thrifty Car Rental.
Lobeck and senior executives will sign long-term employment agreements with Republic and manage the company's day-to-day operations.
The deal is subject to regulatory approval and expected to close before the end of March.
Republic also has interests in solid waste and electronic security.