Movida announced this Wednesday (21) the purchase of the Portuguese car rental company Drive on Holidays (DOH) for 66 million euros, inaugurating its internationalization plan.
Of the total value of the operation, 52.5 million euros will be paid in cash, with another 2.5 million retained for eventual indemnities, in addition to the assumption of 11 million in debt. In the 12-month period ended last June, DOH had net revenue of 20.2 million euros, Ebitda of 16.3 million and net income of 6.7 million.
The announcement shows how Simpar’s plan – owner of Movida, truck rental company JSL and Vamos, of heavy machinery – is beginning to take shape to enter the United States and Europe to diversify geographically and have revenues in hard currencies.
According to Movida’s CEO, Renato Franklin, the debut in Portugal will give the company the opportunity to develop in Europe the integrated and scale models executed in Brazil, adding business lines such as corporate fleet management and monthly vehicle subscription, among others.
“It’s a very fragmented market, with no dominant player and still relatively low penetration,” Franklin told Reuters in an interview.
Created in 2011, DOH has a fleet of 3,300 light vehicles distributed in four stores, all in the vicinity of airports, including the capital Lisbon, as well as Porto, Faro and the Azores region.
Although it is a much smaller market – the Portuguese rental market is around 90 thousand vehicles, while in Brazil only Movida, vice market leader, had 207 thousand at the end of June -, Franklin sees the operation as a first step in the sense of having a relevant operation in Europe.
Initially, the focus will be organic expansion, said the Executive. The expectation for the next year is for growth of about 30% of the DOH. But the conglomerate remains on the lookout for new acquisition opportunities, he said.
According to the president of Movida, the formation of a major player in the Old Continent is an interest of large international automakers with operations in the region, in which this market is still quite fragmented.
Source: CNN Brasil
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