Johnson & Perrott sells Avis car rental division

The Johnson & Perrott Motor Group has sold its Avis Rent A Car business to the operators of the Budget franchise in Ireland.

The sale to Evergrey, an associate company of Flynn Bros Rent A Car, will result in a significant consolidation in the Irish car rental market.

Cork-based Johnson & Perrott yesterday confirmed the sale of the rent-a-car side of the Avis business to Evergrey for an undisclosed sum and divulged the deal is due to close on Mar 15.

Johnson & Perrott is to retain its van rental division and plans to relaunch this business under a new brand in the coming months.

& Chief executive Mark Whitaker paid tribute to the management and staff of the Avis business yesterday.

He said they have shown extraordinary commitment to the Johnson & Perrott Group and to the Avis brand.

“Pivotal to the sale of the business was a commitment that their employment with Avis Rent a Car will transfer to the new organisation,” he said. It is understood as many as 100 people will switch to Evergrey.

In 1991, Johnson & Perrott acquired the trade, business and assets of Avis Rent A Car in Ireland and became its licensee before acquiring the franchise for Avis Truck & Van Rental in 1994. It has been a significant part of the company’s business since then.

Johnson & Perrott Group was founded in 1810. Mr Whitaker said its continued success has been based on its ability to change and adapt throughout its long history.

“The decision to sell the business was part of a significant strategic change for the group which will now focus on the development and expansion of its motor dealership activities in the Cork region and its fleet management activities in Dublin and nationwide.”

The latest filed accounts &show the group recorded a pre-tax loss of just under €1.3m in 2010, well down on the €3.21m loss it incurred in 2009. Operating losses were also down in the year from €2.96m to just under €1.2m. Similarly, the group’s turnover improved, going from €70.12m to just shy of €73m.