The acquisition is valued at around $2.3 billion and will be a consolidation of the various brands of car rental owned by both the companies, under a single entity.
As part of the merger, Hertz will be selling off its budget car rental brand, Advantage, to offset likely competition controversies in the US. The merger will see a synergy of the three biggest car rental brands, Hertz, Dollar Rent A Car, and Thrifty Rental.
Hertz chief executive officer, Mark 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 US 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.’
Scott Thompson, the chief executive officer of Dollar Thrifty, said, ‘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.
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.’