ICR Holdings, the entity which recently acquired Island Car Rentals and Jamaica Rental Company in a $2.7-billion deal, is set to steer a new chapter in its history, navigating into regional markets. The company made the declaration in an interview with the Jamaica Observer earlier this week.

“Island is a strong brand and we’re going to leverage its strength to be able to build on its legacy and be able to take it to new heights,” stated CEO of ICR Holdings Limited Ryan Parkes.

He revealed that ICR Holdings is gearing up to make its mark in markets both locally and regionally.

“When you look at our services and the overall markets we serve, it’s really a great story, and so we want to be able to take that now to other countries within the Caribbean and beyond the Caribbean to North America,” Parkes said.

Though in its early planning phases, ICR Holdings is considering a mix of franchising and greenfield operations for expansion, depending on the data and research outcomes. It’s regional expansion strategy is set to take off in the next financial year, commencing on May 1, 2024.

“We’ve actually started the work in terms of research, and we’re looking now to onboard a consultant to help do what is required in order to make recommendations before the start of the financial year so that we can hit the ground running,” Parkes added.

He shared with the Caribbean Business Report that the first year under ICR Holdings’ ownership will be focused on understanding the market and the approximately 270 staff members. In the following year, the aim is to target expansion within Jamaica.

“There are certain markets here in Jamaica where we could do much better in terms of our optimal potential. We’re going to be going after that. And then the massive project is the region. We want to be in as many Caribbean countries as possible,” he said.

As ICR Holdings looks to expand its car rental business, it’s exploring various capital market transactions, including pursuing an initial public offering (IPO) to fund the plans. “We’re looking to leverage the right mix of debt and equity to drive our expansion plans going forward,” he said.

The company’s customer-centric approach recently earned it the title of ‘Leading Independent Car Rental in the Caribbean’ at the World Travel Awards in St Lucia. Parkes, in his discussion with the Caribbean Business Report, emphasised that the customer-centric culture and competitive advantage were not the only factors influencing the decision to purchase Island Car Rentals and Jamaica Rental Company.

Parkes, who has a history of managing the company’s account for several years, gaining valuable insight into the business, said the experience positions him to be able to understand the needs, strengths and weaknesses of the company. However, he expressed that he was always excited to pursue his passion for transport. “It’s not like work for me,” he said.

He explained that discussions to purchase the companies were in train long before the novel coronavirus pandemic which had a significant and negative impact on the car rental business.

“Some investors were, perhaps, not as confident because they were wondering, what if another COVID was to hit. So there’s that sentiment of uncertainty knowing that we operate in the tourism sector especially on the heels of the tourism sector being upended by the pandemic,” he shared.

However, as he dived into the driving factors that influenced the decision to buy the company, Parkes noted, “Some of the greatest opportunities are most often found in some of the greatest adversities.” He revealed that the decision was made not lightly and the purchase was made based on projections of performance in previous years prior to the pandemic and the quick recovery in growth post-pandemic.

“When you look at the sum total of the viability vis-à-vis the challenges, it was a no-brainer to look at Island [Car Rentals] seriously. The boom within the local tourism sector was also a driving factor in the decision. Since the pandemic, the company has been growing [revenues] by an average of 10 per cent,” he said.

“The business is also a net foreign exchange earner, and when you acquire assets, it’s always good to acquire assets that earn US dollars,” Parkes added.

ICR Holdings also has a pre-owned car dealership, Island Used-Cars, at its Haining Road, New Kingston location in Jamaica which sells three- to four-year-old cars which were previously used as part of the rental fleet.

ICR Holdings acquired the rental car companies following the passing of the previous owner Michael Campbell. Auditing firm PwC did the due diligence on the deal which was completed two months ago. Aside from managing Island Car Rentals’ account books for years, a long-standing relationship between Parkes and the late Campbell, was solidified when Campbell decided to mentor Parkes in understanding the business.

“From time to time we would go out for lunch, and he would speak to me about the different rudiments and nuances of the business, and because of my association with him, I’ve learned a lot,” he said.

“We had agreed that he would remain chairman of Island Car Rentals; it was a plan. So the truth is, we had always agreed for him to remain, to be able to pass on that institutional knowledge that he had also amassed over 50 years. We will definitely be continuing on his legacy and building on it, ” revealed Parkes, confirming that the plans to purchase Island Car Rentals were made long before the founder’s passing.

Parkes told the Caribbean Business Report that Dulcie Moody, general manager of Island Car Rentals, who has been with the company for 40 years, will continue to lead the company and help carry on Campbell’s legacy.