Hertz Wins $30.3M Bid for Advantage Assets
Enterprise intended to purchase Advantage's assets for $19 million, but later withdrew its bid after the asking price exceeded the company's return-on-investment criteria.
Hertz Global Holdings Inc. won a bankruptcy auction for the assets of Advantage Rent-A-Car on March 31.
The purchase agreement provides Hertz with the rights to purchase certain rights, trademarks and copyrights to use the Advantage brand name, Web site and phone numbers, according to a statement issued by Hertz. In addition, the agreement provides Hertz with the option to have assigned to the Company certain leases, fixed assets, airport concession agreements and other agreements associated with approximately 20 locations that Advantage is or previously was operating. Hertz has announced that it will continue operating the Advantage business at these rental locations, and it will assess expansion opportunities.
Mark P. Frissora, Hertz's Chairman and Chief Executive Officer, commenting on the agreement, said, "We're pleased to have secured the purchase of Advantage Rent A Car, a popular brand for price-oriented customers at key U.S. leisure travel destinations. Underscoring our commitment to serve all segments of the leisure car rental market, the 20 Advantage locations, combined with our six Simply Wheelz locations and the Hertz brand nationwide, enables us to serve the wide range of service and price-oriented car rental customers in the United States."
In December 2008, Advantage and 14 affiliates filed for Chapter 11 bankruptcy protection.
At the time of the bankruptcy filing, Advantage said it had made arrangements with Hertz to honor its pending reservations at locations that would be closed.
In early March, Enterprise announced its intention to purchase the Advantage assets for $19 million pending approval of the bankruptcy court, which would also consider competing bids.
Enterprise formally declined to increase its bid once the asking price exceeded the company’s return-on-investment criteria on March 31.
Hertz and Enterprise were the only companies to bid on Advantage’s assets.
Approval of the transaction is pending a court hearing scheduled for April 3.
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