KMA Global Solutions International, Inc. KMAG
Ecologic Transportation, Inc. EGCT
After alluding to the acquisition of well-known brand and business, ACE Rent A Car in a recent 8-K, EGCT today put out a formal press release regarding the LOI. This is an exciting prospect, granted the fact that ACE currently boasts annual revenue close to $70M.
As with any LOI, we take this news with a grain of salt, however, even the hint at such a major transaction is sure to have many people from all walks of the investment community paying attention.
Ecologic Transportation, Inc. Enters Into Letter of Intent Agreement to Acquire ACE Rent A Car, Inc.
SANTA MONICA, Calif., Aug 13, 2012 (GlobeNewswire via COMTEX) — via PRWEB – 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.
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.”