Car and truck rental firm Budget Group Inc. has reached an agreement to sell its Cruise America RV rental subsidiary to Randall and Robert Smalley Jr. for $131 million, Budget announced today.
Budget Group acquired Cruise America from the Smalleys during January 1998.
Thor Industries Inc. also announced today that it would provide financial assistance to the Smalleys to buy Cruise America. Details about Thor’s financial assistance package were not revealed.
The acquisition of Cruise America by the Smalleys is expected to be finalized by Sept. 30, according to the statement issued by Thor Chairman Wade F.B. Thompson.
“Once the transaction is completed, Thor sales to Cruise America are expected to amount to approximately $30 million, or about 750 vehicles, annually,” according to Thor’s statement.
The $131 million is to include cash, notes receivable and “the Cruise America investment group’s responsibility for fleet debt,” according to Budget Group’s statement.
Budget Group plans to continue owning a 19.9% stake in Cruise America and “the two companies will continue their strategic marketing alliance to facilitate tour and other synergistic opportunities,” according to Budget Group.