Europcar Group has signed an agreement with Investindustrial to acquire European low-cost car rental firm Goldcar.

The acquisition will increase Europcar’s exposure to the Mediterranean region, the leisure segment and the low cost segment.

Goldcar has a strong position in the low-cost rental markets in Spain and Portugal and reported revenues last year of around €240m and an estimated adjusted corporate EBITDA of approximately €48m.

Europcar Group said the acquisition will increase its exposure to three major growth engines – the Mediterranean region, the leisure segment and the low-cost segment – and will enable it to become a major player in the fast growing European low-cost segment.

The proposed transaction is based on an enterprise value of €550m and around seven times multiple of a post-synergy Adjusted Corporate EBITDA.

Caroline Parot, CEO of Europcar Group, said: “This game-changing transaction confirms the major role we want to play in our industry’s European consolidation process. After the recent transactions with our Irish and Danish franchisees, the acquisition of Buchbinder in Germany, and now the acquisition of Goldcar, we are well placed to have completed the bulk of our 2020 ambition in terms of acquisitions.

“Following the acquisition of Goldcar, we intend to focus on integration, delivering the expected synergies, but also to continue to work on the digitalisation of our customer journey, the development of our footprint and the pursuit of operational excellence.”

The acquisition is subject to customary conditions precedent, including its approval by antitrust authorities, and is expected to close in the second half of the year 2017.