Hertz Global Holdings, the world’s largest car-rental company, is about to get bigger. The rental giant acquired rival rental-car company, Dollar Thrifty Automotive Group, on Sunday.
With a deal said to be valued at around $1.2 billion in cash and stock, Dollar Thrifty will become a unit of Hertz, adding 1,550 locations to Hertz’s existing 8,250 worldwide locations.
In a statement issued Sunday, Hertz Chairman and Chief Executive Mark P. Frissora said that Dollar Thrifty’s strong international presence would complement Hertz’s global footprint.
And as a recognized international brand, Dollar Thrifty would also help accelerate Hertz’s leisure rental strategy in Europe and other markets.
Frissora claimed that the two companies had already identified at least $180 million in money-saving synergies, which would allow the Hertz to operate at a lower cost. The deal would also strengthen Hertz’s competitive position against rival car-rental companies like Avis Budget and the privately-held Enterprise Rent-a-Car.
Through the deal, Dollar Thrifty joins the carpool with Advantage Rent a Car as a Hertz subdivision. The then-bankrupt Advantage was acquired by Hertz in early 2009 after the company successfully outbid Enterprise in court.
By Adriana Padilla for PeterGreenberg.com.
Related links: BusinessWeek, Forbes, Hertz
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