ICR Holdings Limited, a new holding company, has acquired Island Car Rentals and Jamaica Rental Company in a deal worth $2.7 billion with the help of funds raised by VM Wealth Management which was the lead broker and arranger for the deal.

The acquisition closed in late July and saw the new holding company, founded by career banker Ryan Parkes, taking a 100 per cent stake in both entities.

VM Wealth in a statement on the acquisition said the funds were raised through debt and equity structures, with a mix of 70 per cent in bonds and preference shares and 30 per cent in ordinary shares through private placements.

Dwight Jackson, VM Wealth’s assistant vice-president, Capital Markets, said the acquisition deal, the largest from the entity’s Capital Markets unit to date this year, reflects the expertise, creativity and tenacity of the team in executing a complex acquisition deal in a difficult market which resulted in the successful closure of the acquisition of Island Car Rentals Limited and Jamaica Rental Company Limited.

“We are a well-oiled machine here, when it comes to pulling on all our resources to support our clients in meeting their objectives. Arranging this deal required the roll-out of a special mix of well-structured instruments and we were able to bring it home in a big way with one of the most successful merger and acquisition raises this year. We wish ICR Holdings all the best as it moves on to the next leg of their journey,” he said.

Island Car Rentals Limited is a full-service ground transportation company which caters to visitors, locals and corporate clients, offering car rental services as well as private transfers and executive chauffeur services. The company’s operations began in April 1973 with a total of 15 cars. Since then, the fleet has grown to a size of nearly 1,500 late-model vehicles, making it the largest and leading car rental company on the island.

Ryan Parkes, CEO, ICR Holdings, said: “With the support, guidance and expertise of our valued financial partner, VM Wealth Management Limited, we have successfully completed a major acquisition at a time when the financial market was most unfavourable. This acquisition which has turned a dream to reality, represents not just a transaction but the unlocking of several possibilities in the future. I am excited about the journey ahead and look forward to the continued partnership with VM Wealth as we bring greater value to all our stakeholders.”

He further noted that as the company transitions, it is looking forward to leveraging the strength of the ‘Island’ brand and the team to pursue a robust revenue growth and diversification strategy aimed at realising the optimal potential of the brand.

This acquisition is the latest in a series of successful deals advanced by VM Wealth’s Capital Markets division in recent years. It follows the impressive $11-billion preference share raise on the private market for holding company VM Financial Group Limited in April. VM Wealth also raised $5.8 billion for its parent company VM Investments Limited in a bond offer earlier this year.

Other recent successes include approximately US$9.7 million for Productive Active Solutions Limited and US$5.8 million for West Indies Petroleum South Terminal Limited.

Jackson said the corporate financing arm of VM Wealth Management will continue to be bullish in the space as it supports SMEs and larger entities in their push to expand, raise capital and contribute to local economic growth.

The VM Wealth Corporate Financing Unit offers a range of debt and equity financing, advisory services, corporate loans, receivables financing, lease financing and margin facilities.