Hertz buys Dollar Thrifty for 2.3 billion

Hertz has brought Dollar Thrifty for approximately $2.3 billion dollars (£1.45 billion).

The deal, which is subject to clearance in the US by the Federal Trade Commission, will not impact the Dollar or Thrifty brands in the UK which are operated by Scot Group.

Scot Group holds the master franchise for the Dollar and Thrifty brands in the UK and Northern Ireland, currently operating approximately 90 sites with a fleet size of 17,000 vehicles.

Alison Chadwick, director, regional operations at Thrifty Car & Van Rental told Fleet News: “We will continue to operate the Dollar & Thrifty brands in the UK and Northern Ireland and will continue to compete as strongly as ever in all UK markets.”

Outside of the UK, the three operators, Hertz, Dollar and Thrifty, which recorded combined sales of $10.2 billion over the previous 12 months up to June 2012, will continue to operate as separate brands with the intention of strengthening the Thrifty and Dollar brands while Hertz aims to reinforce its premium corporate appeal.

Hertz chairman and chief executive officer Mark Frissora said: "We have long been of the belief that having a distinct brand to specifically address the needs of different rental groups is imperative to winning in this industry, one brand cannot be all things to all customers; it blurs the value proposition and confuses the pricing structure. Our goal of becoming a multi-brand rental car leader will be achieved by maintaining Hertz’s premium service and standards.”

He continued: “The transaction provides Hertz with two new, well-established brands with airport concession infrastructure in the mid-tier value segment.”
Hertz is paying $87.50 a share, more than double the price it offered two years ago.

Scott Thompson, president, ceo and chairman of the board of Dollar Thrifty, said: "Hertz has made a compelling offer that reflects the strength of our business and our team. 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."

On completion of this acquisition, Hertz has also announced it will sell the Advantage business to Franchise Services of North America (FSNA) and Macquarie Capital.

Hertz acquired Advantage’s parent company, Southwest Tex Leasing, out of bankruptcy in 2009 for $33 million and will sell, at a loss, for $16 million. There is currently only one Advantage rental site in the UK based at Heathrow Airport.