Budget Group to Sell Cruise America, VPSI

Budget Group Inc., owner of Budget Rent a Car Corp., said it agreed to sell both Cruise America, its recreational vehicle rental and sales company, and VPSI, its commuter van pooling company, to focus on its car and truck rental business. Budget said it agreed to sell Cruise America for $131 million, including cash, notes receivable and fleet debt, to an investment group, which includes Cruise America management and its founders. They will receive financing assistance from Thor Industries Inc., a primary supplier of recreational vehicles to Cruise America. Budget said it will retain a 19.9% stake in Cruise America. The company said it agreed to sell VPSI to an investment group led by Rockwood Capital, a private equity investment group based in Indianapolis. The sale is expected to generate proceeds of about $70 million in cash and notes receivable and includes the assumption of fleet debt. The company anticipates both sales to close by September, subject to an antitrust review.