Santa Monica, CA (PRWEB) August 13, 2012
On Thursday August 2, 2012 Ecologic Transportation, Inc. (“Ecologic Transportation, Inc.” or the “Company”) (EGCT) entered into a Letter of Intent (“LOI”) for Agreement to Acquire One Hundred Percent of the Issued and Outstanding Shares of ACE RENT A CAR, Inc.
ACE RENT A CAR, Inc. (“ACE”) is a 46 year old, Indianapolis, Indiana and Chicago, Illinois based Car Rental Company that generated gross revenue of $69 million for the year ending March 31, 2012. ACE Rent A Car ranked “Highest in Car Rental Customer Satisfaction” by J.D. Power and Associates in 2011 and, additionally in 2012, ACE was named one of 50 J.D. Power Customer Service Champions across 20 service industries.
ACE generates its revenue from four operating units consisting of car rental, car sales, airport parking, and reservation system. ACE’s largest operation is its new 7-acre facility at O’Hare International Airport in Chicago and it also has car rental operations in the greater Chicago, Illinois, Indianapolis, Indiana, Minneapolis, Minnesota and Austin, Texas areas. ACE has an affiliate network comprising over 200 locations with 89 of them in strategic US markets. In addition, ACE operates an independent leading-edge reservation system that serves its affiliates and itself, which would allow the Ecologic Brand to rent its environmentally friendly cars from any location worldwide.
Our agreement with ACE is to purchase all aspects of the business, its wholly-owned locations, its affiliate marketing system and the reservation system. The ACE “back office” and reservations and management systems are fully scalable with secure off-site file storage and functional capacity. The ACE management has spanned two generations of the same family since it opened its doors, and is now in the hands of Richard (Dick) Radzis, President, and Charles Mullin Sr., VP Operations and Fleet, with Julie Ray, CPA, as the CFO. These top rated industry veterans will stay with the company and help us not only to keep it profitable and customer oriented, but work with us to develop the successful “green” model and service excellence component.
ACE will be our operational and management base for the expansion and our model for award winning customer service and the green transition. As we add acquisitions we will use ACE staff and its customer service model to train and oversee the transition and on-going service commitment, for which their reputation is nationally well known. The ACE reservations systems, its “Back Office” functions and fleet management systems represent a seamless entry into expansion and the evolution to a totally ecologic based fleet and rental experience. Dick Radzis stated, "I am very excited about bringing together the operations, reservation technology and the culture of ACE with the wisdom, experience and creativity of Ecologic Transportation. This transaction will bring together non-competing components that collectively will add value to the other and in doing so will stage a solid and robust business model".
Ecologic Transportation, Inc. was formed to serve a growing unmet consumer demand for a “pure environmental” car rental company. The Company’s business plan calls for it to acquire multi-regional independent car rental companies, consolidate their operations and brands, introduce economy of scale efficiencies into their sales and operations, and expand market share through the strategic leveraging of the unique market position as the only “Pure Green” multi-geographic car rental company in the world. The Company and its management believe that ACE is uniquely positioned to provide the platform and culture of excellence for the Company’s strategic growth plan.
Ecologic’s Chairman and Founder Edward W. Withrow III said “the Board and management of Ecologic Transportation are extremely pleased to have the opportunity to work with the caliber and experience level of the management and staff of ACE, and look forward to working with them to build a new and superior business model for the car rental industry.”
ABOUT ECOLOGIC TRANSPORTATION, INC.
Headquartered in Santa Monica, CA, Ecologic Transportation, Inc., is a holding company with wholly-owned subsidiaries all dedicated to environmentally friendly transportation products and services. The company encompasses two separate but integrated operations that address the environment and transportation holistically: Ecologic Car Rentals and Ecologic Products. This innovative company has an unbiased approach to green cars and clean fuels by providing a business platform for all emerging environmental transportation technologies. For more information: http://www.ecologictransportation.com
This release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements regarding our expected future financial position, results of operations, cash flows, financing plans, business strategy, products and services, competitive positions, growth opportunities, plans and objectives of management for future operations, including statements that include words such as "anticipate," "if," "believe," "plan," "estimate," "expect," "intend," "may," "could," "should," "will," and other similar expressions are forward-looking statements. All forward-looking statements involve risks, uncertainties and contingencies, many of which are beyond our control, which may cause actual results, performance, or achievements to differ materially from anticipated results, performance, or achievements. Factors that may cause actual results to differ materially from those in the forward-looking statements include those set forth in our reports filed with the SEC. We are under no obligation to (and expressly disclaim any such obligation to) update or alter our forward-looking statements, whether as a result of new information, future events or otherwise.