Hertz Closer to Advantage Sale

In Hertz Global Holdings’ first quarter earnings call on May 3, Hertz Chairman and CEO Mark Frissora announced that it has “agreed on the material terms” on the sale of its Advantage brand with a potential buyer. Frissora said that Hertz has provided “those terms” to the Federal Trade Commission (FTC), and that the company is “optimistic this divestiture will satisfy the FTC staff” while Hertz continues to work with the FTC on the next steps for a final consent order.

Frissora also said that Hertz has made “substantial progress” toward its goal of obtaining antitrust clearance for a possible acquisition of Dollar Thrifty Automotive Group. Antitrust clearance would allow the company to consider the terms in which it would actually move forward on in a potential Dollar Thrifty acquisition.

Frissora would not comment further on the possibility of a Dollar Thrifty acquisition.

Globally the Advantage brand expanded in the first quarter, with revenue up 40% “due to season and expansion of locations and greater consumer visibility,” said Elyse Douglas, CFO, on the call. Douglas noted that over the last 12 months, Advantage has seen 40 locations open internationally. She added that other expansion plans include franchise and affiliate partners worldwide.


For an editorial from ARN Executive Editor Chris Brown on the Hertz announcement, click here

Comments

  1. Just Me [ May 10, 2012 @ 04:57AM ]

    If Advantage is doing so well, why have they just closed @ Brussels Airport? Rates with the Advantage brand have been steadily increasing their rates placing them out of the market against other low cost brands a rumored to be losing money trying to compete against the likes of Budget, and Enterprise.

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