Hertz to Buy Dollar Thrifty for $2.3 Billion
Hertz Global Holdings announced it will acquire Dollar Thrifty Automotive Group in a deal valued at roughly $2.3 billion. Hertz is currently the second largest car-rental company in the U.S., while Dollar Thrifty is the third. Enterprise, which owns National Car Rental and Alamo Rent A Car, is the largest.
The three companies combined will have 75% of the market.
In 2010, Dollar Thrifty’s shareholders rejected Hertz’s bid to purchase the company for $1.2 billion.
Hertz also announced it will sell its relatively small Advantage Rent-A-Car unit to Franchise Services of North America and Macquarie Capital for $16 million. That deal is contingent upon the successful completion of the Dollar Thrifty acquisition.
After the acquisition has closed, Hertz will reportedly continue to operate Dollar Thrifty as separate brands in order to target different groups of customers.
(Photo: Dwight Burdette)