Hertz Global Holdings announced on March 30 the successful completion of the sale of substantially all the assets of its wholly owned subsidiary, Donlen Corporation to Athene Holding Ltd, the companies said in a statement.
Hertz received $891 million in cash proceeds per the terms of the transaction, subject to certain adjustments post-closing based on the level of assumed indebtedness, working capital and fleet equity.
Moving forward, Athene plans to invest behind the Donlen platform to support the continued growth and strength of the business, according to the statement. Athene, an insurance holding company, has more than $200 billion of assets under management.
“We are pleased to have maximized Donlen's value and are making excellent progress on our financial and operational initiatives as we reposition Hertz for the future,” said Paul Stone, Hertz president and CEO, in the statement. “We wish the entire Donlen team continued success under Athene's ownership."
“This investment is squarely in line with our strategy of sourcing attractive, differentiated long-term investments that deliver strong and consistent returns for our growing portfolio,” said Jim Belardi, Athene chairman and CEO.
“We are thrilled to gain the confidence and support of Athene, who believes deeply in our business and our people,” said Tom Callahan, Donlen president. “Donlen will be even better positioned for the future as an industry leader with Athene's investments in our proprietary tools, data management capabilities, and our focus on exceptional customer service, and we look forward to a bright future together."
Hertz filed for Chapter 11 bankruptcy in May 2020.
In 2011, Hertz purchased privately-held Donlen for $250 million, assuming approximately $680 million of Donlen's outstanding fleet debt.