Budget Group, Inc. (NYSE: BD) today announced that it has closed on the sale of its Licensee Leasing Program and has reached agreement to sell two of its new car dealerships. In total, these three transactions will generate equity proceeds of approximately $70 million.
The Licensee Leasing Program, which offers financing to Budget licensees, was purchased by 1st Source Bank, a South Bend, Indiana, based company owned by 1st Source Corporation (Nasdaq: SRCE – news). 1st Source Corporation is the largest locally owned financial institution headquartered in the Northern Indiana-Southwestern Michigan area.
The sale of the two new car dealerships will close in April. In addition, Budget Group is continuing negotiations to sell its other non-core assets, including Cruise America and VPSI.
Budget Group, Inc. owns Budget Rent a Car Corporation and Ryder TRS. Budget is the world’s third largest car and truck rental system and Ryder TRS is the nation’s second largest consumer truck rental company.