27 April 2010

Hertz drives off with Dollar Thrifty for $1.2bn

Hertz is taking over smaller rival Dollar Thrifty in a deal worth $1.2 billion.

The take over will give Hertz more than 1,550 extra rental locations worldwide, resulting in a combined total of almost 10,000.

At least $180 million in cost savings have been identified.

Hertz chairman and CEO Mark Frissora said: "Combining Hertz and Dollar Thrifty is an excellent strategic fit.

"Dollar Thrifty is a $1.6 billion business with more than 1,550 corporate and franchise rental locations worldwide which, when combined with our global network, will serve rental customers on six continents from approximately 9,800 locations.

"Together we will be able to compete even more effectively and efficiently against other multi-brand car rental companies, offering customers a full range of rental options in the US between the Hertz, Dollar, Thrifty and Advantage brands.

"Dollar Thrifty also has a strong international presence, complementing our global footprint, which enables us to utilize a recognized brand to accelerate our leisure rental strategy in Europe and other markets."

He added: "Financially, we believe the deal is attractive, accretive to earnings and structured to maintain Hertz's strong credit profile.

"We've identified at least $180 million of synergies already, primarily in fleet, IT systems and procurement, enabling our companies to operate at an even lower cost."

Dollar Thrifty president and CEO Scott Thompson said: "The combination of Dollar Thrifty with a larger company like Hertz will provide Dollar Thrifty with greater resources and the technology needed to expand our value focused leisure brands.

"We see the combination of our brands with Hertz's brands as very compelling."

by Phil Davies