Hertz agrees to acquire Dollar Thrifty in $2.3 billion deal

By Jerry Limone
Hertz Global Holdings said Monday that it has reached a “definitive” agreement to acquire Dollar Thrifty Automotive Group for $87.50 per share in cash, a transaction valued at approximately $2.3 billion.

The deal’s completion is subject to approval by Dollar Thrifty shareholders and regulatory clearance by the Federal Trade Commission. Regarding the latter, Hertz might have cleared the way by reaching an agreement to sell budget brand Advantage Rent A Car to Franchise Services of North America and Macquarie Capital.

Earlier this year, Hertz CEO Mark Frissora said the company was prepared to sell Advantage as a condition of completing a Dollar Thrifty acquisition.

Hertz has been trying to acquire Dollar Thrifty since the spring of 2010.

"We are pleased to have finally reached an agreement with Dollar Thrifty after a lengthy — but worthwhile — pursuit,” Frissora said. “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."

Dollar Thrifty CEO Scott Thompson said, "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."

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.
This page is protected by Copyright laws. Do Not Copy. Purchase Reprint
blog comments powered by Disqus

View Comment Guidelines

Please upgrade your Flash Player.
Please upgrade your Flash Player.

Travel Weekly Poll

Voices

  • Consumer media discover that travel agents do exist

    "Contrary to some thoughts, travel agents do exist ... We are usually able to get clients better prices, and we know we can see that clients have better experiences. And as our personal motto is: Our Service Travels With You."

    More»

TW Index: Most Active Stocks

Latest Top News:
Caribbean
Europe
Travel Weekly is on Facebook
Viewpoints For Travel Agents
Travel Weekly Topics