ANC Rental Corporation, parent company of Alamo Rent A Car and National Car Rental, is to be sold to a private investment group in a multi-million pound deal.

The rental giant will sell nearly all of its assets, including its international operations, while also passing on some liabilities to Cerberus Capital Management. The sale, valued at £181 million, culminates ANC's efforts to restructure itself after filing for Chapter 11 bankruptcy protection in November, 2001.

The firm said operations of ANC outside of the USA which did not enter Chapter 11 bankruptcy protection would benefit from new funding, which will be used for the further development of the National and Alamo brands. Under the terms of the deal, the investor group will pay £143 million in cash, assume £37.5 million in non-vehicle debt, and provide £94 million in investment backing.

Additionally, the buyer will take on more than £1.25 billion in vehicle debt for the current fleet, plus other current liabilities, estimated to be about £181 million. The sale has been approved by the United States Bankruptcy Court for the District of Delaware.

Bill Plamondon, president and chief executive officer, ANC Rental Corporation, said: 'We have two great brands in Alamo and National and this sale will only make them stronger.'

John Leigh, senior vice-president pan-Europe for ANC Rental Corporation, said: 'This is good news for ANC Rental Corporation as it will allow the business to continue as a going concern. It will also mean that ANC will benefit from fresh investment for the continued development of its operations in Europe, Middle East and Africa.'

ANC Rental Corporation, which is based in Fort Lauderdale, Florida, is one of the world's largest car rental companies with annual revenue of about $2.4 billion in 2002.

ANC Rental Corporation, the parent company of Alamo and National, has more than 3,200 locations in 83 countries. It has more than 14,000 global associates serving customers worldwide, with an average daily fleet of more than 375,000 vehicles.

Leigh added: 'This deal is perfect for us as a company. Clearly it will help us prosper and will see the UK, Europe and Middle East business growing. This change will not affect the high levels of customer service that our clients already receive.'