Catalyst first engaged with Advantage Rent-A-Car, a Canadian rental car company, in 2013. At the time, Advantage was comprised of an aging, unattractive fleet, few/poor/inadequate systems, a disjointed management team, and cumbersome financial liabilities which handicapped the business. Advantage was under a very challenging position due to its remaining operational dependence with with Hertz, its prior owner.
In November 2013, with Catalyst acting as the “White Knight”, Advantage filed for Chapter 11 protection in the U.S. Bankruptcy Court of the Southern District of Mississippi. Catalyst led Advantage through its restructuring, and provided the necessary financial, operational and strategic support to negotiate with the Company’s stakeholders, including Hertz, the Federal Trade Commission, airports and local authorities, car manufacturers and suppliers.
Catalyst completed the full acquisition of Advantage Rent-A-Car in April, 2014 and initiated a number of changes that would transform the business, including:
- re-fleeting the company to enhance flexibility and optimize yield;
- implementing new systems, processes and controls;
- supplementing and strengthening the management team;
- fostering relationships with corporate customers, airlines, hotels and international partners; and
- investing in marketing, including a best-of-class loyalty program and frequent use promotions.
Following the initial success of the Catalyst led turnaround, Advantage was able to achieve further growth by acquiring E-Z Rent-A-Car (“E-Z”). Catalyst, together with the Advantage and E-Z management teams, executed a merger integration plan that stabilized near-term profitability and positioned the new Company for success.
Today, Advantage Rent-A-Car is the fourth largest car rental company in North America, with 40 airport locations across the United States, in 21 of the top 25 largest airports by passenger traffic.