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Sunday 20 August 2017
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Hertz Buys Dollar Thrifty Rent-A-Car – Car Pro News

Hertz Global Holdings Inc. struck a deal to buy Dollar Thrifty Automotive Group Inc. for about $2.6 billion in cash and secure its place as the No. 2 player in the U.S. market.
The $87.50-a-share offer represents an 8 percent premium to Dollar Thrifty’s closing price of $81 on Aug. 24. It’s more than double what Hertz offered a little more than two years ago.
Hertz CEO Mark Frissora, the former chief of auto supplier Tenneco Automotive, has tried for more than five years to acquire Dollar Thrifty, in what may be the last combination of major U.S. car rental companies that regulators would tolerate. Hertz, Enterprise Rent-A-Car and Avis Budget Group Inc. together control about 75 percent of the market, with Dollar Thrifty at 5 percent, according to a February report from IBISWorld. No other competitor has more than 1 percent market share, IBISWorld said.
“We are pleased to have finally reached an agreement with Dollar Thrifty after a lengthy — but worthwhile — pursuit,” Frissora said in a statement. “We have always believed that a combination with Dollar Thrifty is the best strategic option for both companies.”
Based on 29.8 million shares outstanding, Dollar Thrifty is being acquired for an equity value of about $2.6 billion. It will cost Hertz about $2.3 billion after considering almost $300 million in cash on Dollar Thrifty’s balance sheet at the end of June, said Richard Broome, a Hertz spokesman. Dollar Thrifty traded below $1 a share in March 2009.




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