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Hertz and Dollar Thrifty merge
Published: 28/08/2012 RSS
Hertz and Dollar Thrifty have signed a $2.3 billion merger, creating the single largest multi-brand car rental company globally.
Mark P. Frissora, Hertz Chairman and CEO, said the agreement had been reached after a "lengthy but worthwhile" pursuit spanning three years.
The transaction provides Hertz greater scale with two new, well-established brands with airport concession infrastructure in the mid-tier sector, and enables Dollar Thrifty to expand its "value-focused leisure brands".
"We'll be a stronger global competitive player with a full range of rental options not only in the US but in Europe and other markets given Dollar Thrifty's strong international presence," said Frissora.
Hertz will acquire Dollar Thrifty for $87.50 per share in cash, and in a statement, it said the boards of directors of both companies "have unanimously approved the transaction". The merger will save around $160 million in costs annually.
Hertz has also 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.