Hertz Global Holdings Inc., the car-company formerly held by Ford, has agreed to buy Dollar Thrifty Automotive Group Inc. for about $1.2 billion in cash and stock. The offer is worth $41 a share, a 5.5% premium from April 23.
The Park Ridge, N.J. company adds the names Dollar and Thrifty to its family, which already includes Hertz and Advantage. The move is part of a plan to help the company better compete in the rebounding travel market, spurred by the rebounding economy.
Hertz, which has raised its full-year earnings forecast for this year, will be expanding its global network to 9,800 outlets to increase international sales. In addition to an expansive network of outlets, the company will also be able to work with four-brands on the market, while streamlining back-office operations and practice the sharing of fleets between brands.
Dollar shareholders will receive $32.80 per share plus 0.6366 shares of Hertz for each share they hold. hertz expects to to report a pretax income this year of $290 million to $305 million with sales as high as $7.7 billion.
– By Stephen Calogera
Source: Automotive News (Subscription Required)