Hertz will acquire Dollar Thrifty after years of back and forth negotiations.
Hertz Global Holdings and Dollar Thrifty Automotive Group announced Aug. 26 that the two companies have entered a definitive merger agreement. Hertz will purchase Dollar Thrifty for $87.50 per share in cash, translating into a purchase worth a corporate enterprise value of approximately $2.3 billion.
Each of the two companies’ boards has unanimously approved the transaction.
Hertz will also be selling the Advantage business to Franchise Services of North America and Macquarie Capital, as well.
The company stressed that 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 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,” he continued.
DTAG president, CEO and chairman Scott Thompson added: "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."