EXHIBIT 99.2
Cendant to Acquire UK-based National Park Corporation Limited in $1.3 Billion
Transaction
NPC's Businesses Include UK's Largest Private Parking Company and Auto Club With
Over 3.5 Million Members
STAMFORD, CT, PARSIPPANY, NJ--(BUSINESS WIRE)--March 23, 1998--Acquisition
Immediately Accretive to Cendant's EPS.
Cendant Corp. (NYSE:CD-news), the world's largest consumer services company,
today announced that it has agreed with the board of directors of U.K.-based
National Parking Corporation Limited ("NPC") to the terms of a recommended cash
offer to acquire the entire issued share capital of NPC for 673 pence per share,
a total of approximate (pound)801 million (approximately $1.3 billion). Payment
for the shares will be made in cash.
Cendant has received irrevocable undertakings to accept the offer with respect
to holdings amounting to approximately 73 percent of NPC's issued share capital
and the directors of NPC intend unanimously to recommend that NPC shareholders
accept the offer. The offer is subject to customary regulatory approvals and it
is anticipated that the transaction will close during the second quarter of
1998.
NPC operates in two principal segments: National Car Parks Limited ("NCP"), the
largest private (non-municipality owned) car park operator in the U.K. with
approximately 500 locations, and Green Flag Group Limited, the largest
for-profit roadside assistance organization with more than 3.5 million members
in the U.K. It is anticipated that Robert D. Mackenzie will remain as Chief
Executive of NPC following its acquisition by Cendant.
Walter A. Forbes, chairman, and Henry R. Silverman, president and chief
executive officer of Cendant, stated: "NPC perfectly complements many of
Cendant's core competencies, while at the same time strengthening our
international growth opportunities. Our fuel card, fleet management and
membership services units already have strong market positions in the U.K., and
NPC will enhance our positions. In addition, the NPC franchise is a true brand,
with approximately 500 parking locations, providing us a platform to expand
throughout the United Kingdom, and eventually worldwide."
"Our U.K. units will benefit from opportunities to cross-market to the
approximately 70 million annual consumer contacts, including 3 million frequent
users of NPC facilities and the 3.5 million members of Green Flag, as well as
the opportunity to offer parking and roadside assistance services to our
millions of current U.K. customers. Consistent with the strategy we employed in
the acuqisitions of Travelodge, Coldwell Banker and Avis, after the acquisition
of NPC is completed we intend to minimize any hard asset exposure of NPC to
Cendant shareholders."
Cendant said it expects the acquisition to be immediately accretiv t its
earnings per share. (1)
Stephen P. Holmes, Cendant Vice Chairmn, to whom NPC will report, said: "During
the past two years, NPC has made substantial investments to improve its
technological infrastructure and to enhance operating efficiencies. We expect to
reap the benefits in 1998, 1998 and in the future. We also look forward to
implementing various cross-marketing initiatives with customers of both ncp and
Green Flag."
NPC is the biggest private (non-municipality owned) single car park operator in
the United Kingdom, with a portfolio of apxomiately 500 owned and managed car
parks in over 100 towns and city centers and major airport locations. NPC,
through its acquisitions of National Breakdown Limited and UK Insurance Limited
in 1984, has also develoepd a broad-based assistance group, under the brand name
of Green Flag. Green Flas offers wide range of emergency support and rescue
services to apprxoimately 3.5 million members.
Cendant Corp., is the world's premier provider of consumer and business
services. With a market capitalization in excess of $30 billion, it ranks among
the 100 largest U.S. corporations. Cendant operates in three principal segments:
Membership, Travel and Real Estate Services. In Membership Services, Cendant
provides access to travel, shopping, auto, dining, and other services through
more than 66.5 million memberships worldwide. In Travel Services, Cendant is the
leading franchisor of hotels and rental car agencies worldwide, the premier
provider of vacation exchange services and the second largest fleet management
company. In Real Estate Services, Cendant is the world's premier franchiser of
residential real estate brokerage offices, a major provider of mortgage services
to consumers and a global leader in corporate employee relocation. Headquartered
in Stamford, Conn. and Parsippany, N.J., the company has more than 34,000
employees, operates in over 100 countries and makes approximately 100 million
customer contacts annually.
In the U.K., Cendant's PHH unit is the market leader in vehicle management
services, managing over 275,000 vehicles for corporate customers. PHH also
provide accident management services for corporate fleet and claims handling for
major auto insurers. PHH has an independent vehicle- related network of over
12,000 outlets. In addition, through PHH's AllStar fuel card and Harpur's
Dialcard and Overdrive fuel cards, the company has nearly one million fuel cards
in use in the U.K. alone. These cards are accepted at approximately 12,000
gasoline stations in the U.K. and enable corporate clients to manage and control
their fuel costs.
Cendant's membership services division also markets a variety of value-added
membership programs in Europe. Since acquiring its European licensing rights in
1996, the Company has more than doubled its international membership every year.
Cendant currently serves four million international members through partnership
agreements with fourteen major European banks.
Cendant's RCI unit is the world's largest timeshare exchange company, with more
than 2.4 million member families worldwide and 200,000 in the U.K. alone.
Through RCI, timeshare owners can swap the weeks they own and spend a vacation
at one of over 3,200 timeshare properties in 89 countries worldwide.
(1) The Takeover Panel in the UK Requires Cendant to state that such enhancement
should not be interpreted to mean that earnings per share will necessarily be
greater than that for the relevant preceding financial period.