Aug. 27, 2012—Rental car providers Hertz Global Holdings Inc. and Dollar Thrifty Automotive Group Inc. have entered into a definitive merger agreement.
Under the agreement, Hertz will acquire Dollar Thrifty for $87.50 per share, a transaction valued at roughly $2.3 billion. The boards of directors of both companies have unanimously approved the transaction.
Hertz said the combination of the two companies will create a global, multi-brand rental car operation that will offer customers a full range of rental options. The merger provides Hertz with multiple strategic options to address both corporate and leisure business in the car rental market.
The transaction creates significant growth opportunities, Hertz said. It will allow the company to pursue premium markets and compete more effectively with its multi-brand peers.
"We are pleased to have finally reached an agreement with Dollar Thrifty after a lengthy pursuit,” said Mark Frissora, chairman and CEO of Hertz. “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.”
Scott Thompson, president, CEO and chairman of Dollar Thrifty’s board of directors, said the merger—which took about three years to complete—is a win for both companies.
"Hertz has made a compelling offer to our stockholders that reflects the strength of our business and our team,” Thompson said. “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. I am pleased that we have reached a win-win transaction for both Hertz and Dollar Thrifty."
The merger of Hertz and Dollar Thrifty creates a combined annual revenue of $10.2 billion across roughly 10,000 global rental locations.
