Hertz Completes Its Dollar Thrifty Deal
Hertz finally got Dollar Thrifty. The Park Ridge, New Jersey-based auto rental giant, already the eighth largest franchise in the world, according to the Franchise Times Top 200, just got a lot larger, completing its long-awaited purchase of Dollar Thrifty Automotive Group. The deal is valued at $2.3 billion.
Hertz has spent more than two years trying to buy the Oklahoma-based Dollar Thrifty. First, it had to overcome a rival offer from Avis Budget Group, and then Dollar Thrifty shareholders rejected an earlier offer. Hertz then increased its offer to $87.50 a share in cash in August, and then the deal had to overcome government concerns.
Last week, Hertz announced that it had reached a deal with the Federal Trade Commission, clearing the way for the sale. Under the deal, Hertz agreed to sell off its Advantage business along with selected airport locations and other assets. Hertz had already agreed to sell some of its assets to Adreca Holdings Corp., a subsidiary of Macquarie Capital, which is operated by Franchise Services of North America. Franchise Services operates U-Save Car & Truck Rental, Rent-a-Wreck of Canada and Xpress Car Rental.
Hertz said today that the merger will create a rental car leader that will offer customers a range of rental options. Dollar Thrifty will provide Hertz with additional scale and the addition of two established brands with extensive airport rental presence. The company believes the acquisition will make it more competitive. "Over the past six years, we have competed successfully with only one global premium brand in place while our competitors have had multiple brands to work against us," CEO Mark Frissora said in a statement. "Starting today, we now have two additional, popular brands to compete across multiple market segments."