Fox Rent A Car, Inc., a Los Angeles, CA-based rental car company, raised $25m in funding.
Backers included NewSpring Mezzanine Capital, Kemper Corporation (NYSE: KMPR) and Star Mountain Capital.
The company intends to use the funds to capital refinance its existing debt.
Led by Allen Rezapour, Fox is the fifth largest rental car company in the United States with a fleet of over 16,000 vehicles at 19 locations across eight states. All locations are either within airports or near airports predominately in tourist destinations.
THE PRESS RELEASE
NewSpring Invests in One of the Nation’s Largest Rental Car Companies
RADNOR, PA – July 20, 2017 – NewSpring Capital, a family of private equity funds providing growth and expansion capital, announced today that NewSpring Mezzanine Capital (“NewSpring”), the Firm’s dedicated mezzanine fund, has led a $25 million investment in Fox Rent A Car, Inc. (“Fox”) in partnership with Kemper Corporation (NYSE: KMPR) and Star Mountain Capital. Proceeds from the transaction will be used to help refinance the Company’s existing debt.
Headquartered in Los Angeles, CA, Fox is the fifth largest rental car company in the United States. The Company maintains a fleet of over 16,000 vehicles at 19 locations across eight states. All locations are either within airports or near airports predominately in tourist destinations. The Company is considered a low-cost agency with the majority of their customers being leisure travelers.
“Possessing a strong and defensible market position, Fox is currently in seven of the top ten airports in terms of rental revenue. Backed by a veteran management team, all with proven experience in the industry, this Company is well-positioned for continued growth,” commented Anne Vazquez, NewSpring Partner.
“We look forward to working with Anne and the team at NewSpring as we continue to provide value and superior service to our customers,” said Allen Rezapour, co-founder of Fox. “NewSpring’s long term approach provides Fox with the flexibility we need to execute on new and exciting opportunities.”
Fox Rent A Car, Inc. was founded in 1989 as a discount brand catering to airport travelers. Actively managed and owned by its founders, the organization has enjoyed robust growth and positive operating income for over twenty-five years. Established on the basis of joining technology-enabled efficiencies with proactive price management, Fox has been successfully growing airport rental market share and positioning itself as a viable alternative to the larger brands in the car rental space. With 19 major airport locations across the US, Fox Rent-A-Car offers the consumer the same selection of foreign and domestic vehicles at a significant discount from the larger rental operators in the market. As the 21st century traveler becomes more discerning and cost-conscious, the Fox brand will continue to gain acceptance and a loyal following, founded on the principle of consistently offering value and superior service to the customer. For more information, visit www.foxrentacar.com