A car service company that has been on the verge of closing its doors in a bankruptcy filing has been acquired by an American car company that specializes in leasing out cars.
A source familiar with the deal said on Thursday that a private equity firm, Ballyhoo Ventures, acquired the company, which had been owned by a Chinese investor, to help it get its finances in order.
The company, called Executive Car Service Group, operates in California, New York and Arizona.
It started in 2007 with three cars, a red hatchback and a black sedan.
Last year, it moved to a larger fleet and moved to Los Angeles to be more accessible to families with kids.
Ballyhauvens acquisition, which is not expected to affect the company’s operations, was announced by the company in an investor letter on Wednesday.
Its main competitor, the California-based company, had been trying to get the deal done.
At one point, it had been negotiating with several other companies for the business, which includes the leasing of the cars.
But last year, Balsam acquired Executive Car Services Group for about $1 billion, the company said.
CEO of Balsams Executive Car Group, James Lee, said in a statement that he was pleased to partner with BallyHoo Ventures and look forward to working with them to continue delivering exceptional services to our clients.
He said the deal is “a great opportunity for Balsamin to become a part of the Executive Car Family.”
This deal also marks the latest in a string of acquisitions by Bally and its CEO.
Earlier this month, it acquired Balsamedia, a global car rental company.