Hertz (HTZ) and Dollar Thrifty (DTG) Announce Definitive Merger Agreement

NYSE: HTZ) and Dollar Thrifty Automotive Group, Inc. (NYSE: DTG) announced that they have entered into a definitive merger agreement under which Hertz would acquire Dollar Thrifty for $87.50 per share in cash in a transaction valued at a corporate enterprise value of approximately $2.3 billion.

The combination of Hertz and Dollar Thrifty will create a global, multi-brand rental car leader offering customers a full range of rental options through its strong premium and value brands.  The boards of directors of both companies have unanimously approved the transaction.

Hertz (HTZ) also announced that it has reached an agreement to sell the Advantage business to Franchise Services of North America (“FSNA”) and Macquarie Capital.  FSNA is an experienced rental car operator with subsidiaries including, among others, U-Save, Rent-a-Wreck, Practicar and X Press Rent-a-Car.  The closing of that divestiture is conditioned upon, among other things, Hertz completing an acquisition of Dollar Thrifty.

Hertz Chairman and Chief Executive Officer, Mark P. Frissora said: “We are pleased to have finally reached an agreement with Dollar Thrifty after a lengthy – but worthwhile – pursuit.  We have always believed that a combination with Dollar Thrifty is the best strategic option for both companies.  The transaction provides Hertz instant scale with two new, well-established brands with airport concession infrastructure in the mid-tier value segment.  We’ll be a stronger global competitive player with a full range of rental options not only in the U.S. but in Europe and other markets given Dollar Thrifty’s strong international presence.  In addition, we look forward to moving efficiently and swiftly through the regulatory process having reached an agreement to divest our Advantage brand.”

“Hertz has made a compelling offer to our stockholders that reflects the strength of our business and our team.  Hertz is the logical partner for us with the resources to expand our value focused leisure brands in key car rental markets around the world,” said Scott Thompson, President, CEO and Chairman of the Board of Dollar Thrifty.  “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.”

About Hertz Global Holdings, Inc.  – HTZ

Hertz (HTZ) is the largest worldwide airport general use car rental brand, operating from approximately 8,650 corporate and licensee locations in approximately 150 countries in North America, Europe, Latin America, Asia, Australia, Africa, the Middle East and New Zealand. HTZ is the number one airport car rental brand in the U.S. and at 119 major airports in Europe. In addition, the Company has sales and marketing centers in 60 countries which promote Hertz business both within and outside such country.

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Post Written By: Ed Liston Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.