Tag Archive | "Hertz Global Holdings Inc."

Penske Acquires Hertz Ind. Franchising Rights


Bloomfield Hills, Mich. — Penske Automotive Group acquired the assets and franchise rights to become the operator of Hertz rental car locations in certain markets throughout Indiana. Penske will now operate more than 20 on and off-airport locations, including the Ft. Wayne, South Bend and Indianapolis on-airport locations.

“With our purchase of the Hertz-Memphis, Tennessee market in October, 2012, this acquisition is a logical progression in our relationship,” said Bud Denker, President of the Penske Car Rental operations. “Our expansion will allow us to begin scaling our operations, and will help Hertz accelerate its growth in a key market.”

Hertz will provide the company with a full array of services to help expand the market presence of the Hertz brand in Indiana while ensuring all products and services provided meet Hertz’s standard of customer service.

“With this expanded partnership, we’re confident we’ll be able to accelerate our growth throughout the region and continue our expansion into the neighborhood market,” said Mark P. Frissora, Chairman and Chief Executive Officer for The Hertz Corporation.

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FSNA Releases Details About Advantage Rent-A-Car Acquisition From Hertz


CALGARY – Franchise Services of North America Inc. (FSNA) entered into an agreement to acquire Simply Wheelz LLC, a Delaware limited liability company and the holding company of the Advantage Rent-A-Car brand (Advantage) and certain other assets from Hertz Global Holdings Inc. FSNA’s purchase of Advantage facilitates Hertz’s $2.3 billion acquisition of Dollar Thrifty Automotive Group Inc.

FSNA will operate Advantage from 62 rental locations servicing airports across the United States. This includes certain former Thrifty rental locations where Advantage will now operate from in-terminal concessions in new markets in the United States. The acquisition significantly expands upon FSNA’s current leisure car rental presence, which consists of 28 franchised airport locations operated under the U-Save Car & Truck Rental brand globally.

“The acquisition of Advantage is a significant milestone for FSNA as it marks a major step forward in our growth strategy by considerably strengthening our position in the U.S. car rental market,” said Sandy Miller, Co-Chairman and Co-CEO of FSNA. “Advantage is a well-known brand in the leisure rental car space, and their operations include prime airport locations, which will complement our existing North American business. We plan to continue the development of the brand both domestically and internationally. We welcome the Advantage employees and their customers and are committed to making this a seamless transition for all.”

“Expanding our car rental footprint and running multi-branded companies will help to enhance the underlying value of the company for our shareholders. We also believe that in many instances, an opportunity will exist for our franchisees to expand their offerings and this will mean an incremental opportunity for our insurance divisions,” added Tom McDonnell, Co-Chairman and Co-CEO of FSNA.

The completion of the acquisition is conditioned upon, among other things, Hertz completing its acquisition of Dollar Thrifty. The merger is expected to close in the fourth quarter.

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Hertz and Dollar Thrifty Ink Merger Deal


PARK RIDGE, N.J., and TULSA, Okla. – Hertz Global Holdings Inc. and Dollar Thrifty Automotive Group, Inc. entered into a definitive merger agreement, under which Hertz would acquire Dollar Thrifty for $87.50 per share in cash in a transaction valued at a corporate enterprise value of approximately $2.3 billion. The combination of Hertz and Dollar Thrifty will create a global, multi-brand rental car leader offering customers a full range of rental options through its premium and value brands. The boards of directors of both companies have unanimously approved the transaction.

Hertz also announced that it has reached an agreement to sell the Advantage business to Franchise Services of North America (“FSNA”) and Macquarie Capital. FSNA is a rental car operator with subsidiaries including, among others, U-Save, Rent-a-Wreck, Practicar and X Press Rent-a-Car. The closing of that divestiture is conditioned upon Hertz completing an acquisition of Dollar Thrifty.

Hertz Chairman and Chief Executive Officer, Mark P. Frissora said, “We are pleased to have finally reached an agreement with Dollar Thrifty after a lengthy – but worthwhile – pursuit. We have always believed that a combination with Dollar Thrifty is the best strategic option for both companies. The transaction provides Hertz instant scale with two new, well-established brands with airport concession infrastructure in the mid-tier value segment. We’ll be a stronger global competitive player with a full range of rental options not only in the U.S. but in Europe and other markets given Dollar Thrifty’s strong international presence. In addition, we look forward to moving efficiently and swiftly through the regulatory process having reached an agreement to divest our Advantage brand.”

“Hertz has made a compelling offer to our stockholders that reflects the strength of our business and our team. Hertz is the logical partner for us with the resources to expand our value focused leisure brands in key car rental markets around the world,” said Scott Thompson, President, CEO and Chairman of the Board of Dollar Thrifty. “After three years of merger-related activity and speculation, I am pleased that we have reached a win-win transaction for both Hertz and Dollar Thrifty.”

The combination provides Hertz with multiple strategic options to address both corporate and leisure business in all three tiers of the car rental market. The combined company would have enhanced leadership positions in key markets around the world, with combined June 30, 2012 LTM sales of $10.2 billion and EBITDA of approximately $1.8 billion across approximately 10,000 locations globally. Moreover, the transaction creates significant growth opportunities, allowing Hertz to pursue mid-tier value and premium markets with dedicated brands, and compete more effectively with its multi-brand peers. The combination is expected to create significant synergy opportunities, including higher productivity and efficiency from shared assets, the elimination of duplicate functions and better deals from suppliers. The company anticipates at least $160 million of annual cost synergies from the transaction, with additional sales growth opportunities.

The transaction has been structured as a two-step acquisition including a cash tender offer for all outstanding shares of Dollar Thrifty common stock followed by a cash merger in which Hertz would acquire any remaining outstanding shares of Dollar Thrifty common stock. The transaction is subject to the tender of at least a majority of the shares of Dollar Thrifty common stock, as well as other customary closing conditions. The successful completion of the transaction is also subject to regulatory clearance by the Federal Trade Commission. Hertz has remained closely engaged with the FTC to secure antitrust clearance for the proposed transaction and Dollar Thrifty will fully cooperate in the process.

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Hertz Will Pay $250 Million to Buy Leasing Firm Donlen


Hertz Global Holdings Inc. will acquire vehicle-fleet leasing and management company Donlen Corp. for $250 million, and is also assuming $680 million in debt, in a deal the two companies said they plan to announce Monday.

The deal is easily digestible for Hertz, which has a market capitalization of $6.2 billion, and isn’t expected to affect its efforts to acquire Dollar Thrifty Automotive Group, said Hertz Chief Executive Mark Frissora.

In May, Hertz offered more than $2 billion for Dollar Thrifty, countering an about $1.7 billion bid from Avis Budget Group Inc. Both bids involve a combination of cash and stock, reported The Wall Street Journal.

The Donlen acquisition will give Hertz access to the long-term vehicle-leasing and fleet-management businesses, expanding the range of services Hertz can offer to its corporate customers. Based in Northbrook, Ill., privately held Donlen leases and manages more than 144,000 vehicles in the U.S., Canada and Mexico.

Donlen provides corporate customers technology that gives them real-time data on their vehicles and other services to manage their vehicle fleets.

Hertz has been increasing its technology-oriented services, such as virtual kiosks and Hertz On Demand, which allows customers to rent vehicles spontaneously and competes with short-term rental services such as Zipcar Inc.

Hertz has about 500,000 vehicles in its fleet in the U.S. and Europe, and about 800,000 vehicles total when including licensees.

“This fits in with our asset-light, technology-driven strategy,” said Mr. Frissora in an interview. “We didn’t offer vehicles on a yearly basis. and now we will have that ability with Donlen. So it’s very complementary.”

The deal has already been approved by the boards of directors of both companies and by Donlen’s shareholders. The transaction is expected to close in the third quarter of this year.

Gary Rappeport, Donlen’s chief executive, said in a statement: “There are a number of synergies between the two businesses that will allow us to expand and accelerate Donlen’s offerings.”

As for the Dollar Thrifty deal, both Hertz and Avis are continuing to work through the Federal Trade Commission antitrust review process. However, Avis has become less interested in Dollar Thrifty since it announced its acquisition of Avis Europe in June for $1 billion, according to people familiar with the matter.

Still, Avis could offer more stock to raise its Dollar Thrifty offer. It hasn’t officially dropped its bid for the company.

The bidding war for Dollar Thrifty has been a long-running affair. In April 2010, Hertz and Dollar Thrifty had a $1.2 billion deal. But Avis came up with a higher bid, and a takeover battle ensued that resulted in Dollar Thrifty shareholders rejecting the Hertz deal at a meeting in September.

Avis had been going through the regulatory process when Hertz came back in May with a higher offer.

On Friday, Dollar Thrifty’s stock closed at $73.23 per share on the New York Stock Exchange, giving it a market capitalization of $2.1 billion.

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