JSL announces acquisition of Movida brand and its operations

Mogi das Cruzes, September 5, 2013 – JSL (BM&FBOVESPA: JSLG3 and ADR Level 1: JSLGY) pursuant to Instruction 358 of January 3, 2002, issued by the Brazilian Securities and Exchange Commission, and Article 157, paragraph 4, of Law 6404 of December 15, 1976 (“Corporation Law”), hereby informs its shareholders and the market in general that, on this date, the Company entered into purchase agreements for the acquisition of quotas representing one hundred percent (100%) of the capital stock of Movida Locação de Veículos LTDA. (“Movida”) and APTA Veículos e Representações LTDA. (“APTA”), the largest of Movida‘s three franchisees. Conclusion of the acquisition depends upon compliance with certain conditions precedent inherent to this type of transaction, including approval by CADE, Brazil‘s antitrust authority.

The acquisition of Movida and APTA, companies that operate in the vehicle rental segment (“Rent a Car”), involves all of Movida‘s operations, including its brand. Movida also has contracts with another two franchisees which operate exclusively in Santos and the north coast of São Paulo, and in Uberlândia, Minas Gerais. These two Movida franchisees will continue to be operated by third parties.

Movida, which specializes in daily and monthly vehicle rentals, has been in business since 2006 and is well-established in all the main cities and airports in the Southeast, South, Northeast and Midwest regions. It currently has 29 stores and around 2,400 vehicles.

APTA, Movida‘s main franchisee, with six stores and around 780 vehicles, operates in the South region (Paraná, Santa Catarina and Rio Grande do Sul).

If the acquisition is concluded, JSL will begin operating in the daily, monthly and annual light vehicle rental segment (“Rent a Car”) for individuals and companies through a strategically well-positioned and differentiated company with an established operational base, systems and trained personnel.

According to the information received by JSL and based on unaudited figures, in 2012 the two consolidated companies (Movida and APTA) generated revenue of R$98.8 million (R$65.1 million of which from vehicle rentals and R$33.7 million from the sale of assets), EBITDA of R$14.6 million and EBITDA added to the cost of assets sold (EBITDA Added) of R$46.8 million, while net fixed assets closed June 2013 at R$63.6 million. The total amount of the transaction is R$65.0 million, giving a net price of around R$10.5 million after deducting assumed debt, to be paid on demand, subject to the retentions and price adjustments envisaged in the Agreement.

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The Company invites you to a conference call to discuss the transaction:

Conference Call and Webcast (with Simultaneous Translation into English)
Monday, September 09, 2013
1:00 p.m. (NY Time)
2:00 p.m. (Brasília Time)

Dial-in Phone Numbers
Parties in Brazil: +55 (11) 3127-4971 or (11) 3728-5971
Parties in other countries: +1 (516) 300-1066
Access Code: JSL

To Access the Webcast, click here.

Investor Relations Area:

Phone: +55 (11) 2377-7178