"Budget Storage USA":
Wonder if they have refrigeration = a storage place when your stringer is full :)
Carol
marketguide2.newsalert.com
Storage USA Agrees in Principle to Form Strategic Alliance With Budget Group, Inc.
Business Wire - March 04, 1999 08:15
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MEMPHIS, Tenn.--(BUSINESS WIRE)--March 4, 1999--Storage USA, Inc., (NYSE:SUS) announced today that it reached an agreement in principle to create a strategic alliance between Budget Group, Inc. (NYSE:BD) and Storage USA Franchise Corp., an affiliate of Storage USA.
Memphis-based Storage USA, the nation's second-largest self-storage company, operates 485 self-storage facilities in 31 states and the District of Columbia. Budget Group, Inc., based in Daytona Beach, Fla., owns the nation's second largest consumer truck rental business, operating a combined fleet of 46,500 Budget and Ryder trucks at over 4,000 locations across the country. Budget Group, through its acquisition last June of Ryder TRS, operates a fleet of more than 30,000 trucks at more than 3,500 Ryder dealers in the U.S. In addition, Budget Group operates Budget Truck Rental, which owns a fleet of 16,500 trucks - ranging in size from cargo vans to 24-foot trucks - at about 500 locations.
Under the proposed strategic alliance, Storage USA and Storage USA Franchise Corp. would:
-- Gain the exclusive right in the self-storage industry to offer
Budget/Ryder truck rentals at its self-storage facilities in
selected markets across the country.
-- Have the right to convert existing and future Storage USA
facilities to the name "Budget Storage USA," as well as the right
to market franchises under the name Budget Storage USA.
-- Receive pre-qualified leads on customers who call Budget or
Ryder's national toll-free number to arrange a truck rental.
Customers who express an interest in self-storage would be
referred to the closest Budget Storage USA or Storage USA
location or to Storage USA's national toll-free number,
1-800-STOR-USA.
"This alliance gives both Storage USA and Budget tremendous opportunities for co-branding, co-marketing and cross-selling," said Dean Jernigan, Chairman and CEO of Storage USA. "This will give us access to the millions of customers who call Budget or Ryder every year, and it has the potential to significantly expand and enhance our franchise program. We are very excited about linking the name of one of the world's leading truck rental businesses with Storage USA."
"A high percentage of truck rental customers need self-storage, and a high percentage of self-storage customers need truck rental," Mr. Jernigan said. "The self-storage and truck rental businesses have significant synergies - and we believe this alliance will allow each of us to capitalize on these synergies."
Mr. Jernigan said the alliance has the potential to substantially increase the value of the company's franchise offering, particularly to existing independent self-storage operators. "They will now have an even greater incentive to join our franchise system by converting their facility to a Budget Storage USA franchise," he said. In selected markets, independent self-storage facilities will have the ability to be a Budget or Ryder dealer only by becoming Budget Storage USA franchisees. As franchisees, they also will receive pre-qualified leads from those customers who respond positively to an inquiry about self-storage while reserving a Budget or Ryder truck through their national toll-free reservation numbers.
The agreement in principle is subject to the negotiation and execution of definitive agreements, which will require approval of both companies' boards of directors.
Storage USA Inc. is a Memphis-based fully integrated, self-administered and self-managed real estate investment trust (REIT), which is engaged in the management, acquisition, development, construction and franchising of self-storage facilities. Of 485 self-storage facilities located in 31 states and the District of Columbia, the company currently owns 422 facilities containing approximately 27.8 million square feet and manages 63 facilities, including franchises, containing approximately 4.1 million square feet.
At December 31, 1998, Storage USA Franchise Corp. had 43 franchised facilities open and operating, 37 facilities in design and construction and 14 projects approved, subject to final documentation.
Ed. NOTE: Fwrd-look'g stmts. omitted.
CONTACT: Storage USA
Investor Contact:
Christopher Marr, 410/730-9500
or
Media Contact:
Buck Brown, 901/252-3807
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