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.
The project will create 3,000 new jobs and more than $75 million in capital investment.