Shares of International Development and Environmental Holdings, Inc. have climbed significantly today as the parking management and truck leasing company announced that it has entered into a Letter of Intent (LOI) to acquire a Budget truck rental dealership from Heights Management 176 LLC.
IBISWorld, a leader in market research, announced in a report that the rental truck service and leasing industry revenues in 2009 neared $16.5 billion. This high dollar value is anticipated to continue to go even higher, according to the research report, as the values were achieved while the economy is still in a slump and experiencing ongoing recovery from the recession that sent the markets so far south a couple years ago. IBISWorld maintains the position that this industry will continue to experience growth over the next five years as the economy stabilizes, corporations look for further strategies to minimize expenses and the housing industry begins to grow again as people use the rental vehicles to move into new houses.
Commenting on the LOI, Scott Lieberman, CEO and Chairman of IDEH, stated, “The timing of this acquisition could not be more fortuitous. The Rental Truck Services and Leasing industry is beginning its turnaround and IDEH, will be the beneficiary of the market revival. This franchise along with others we are presently exploring, hold the potential to provide significant returns to our shareholders.”
As with any acquisition, the contract is still subject to conditions at this point. Budget must give consent to the transaction, independent appraisals must be conducted and a due diligence review is also mandatory.
Since IDEH began trading two months ago, it has had an average trading day of 319,232 volume, but the stock has go through an awakening today with over 50 million shares changing hands by lunch.
More information on the company is available at www.idehinternational.com