It has been sold by Ford in a deal worth $15 billion, which includes $10 billion of debt, thus giving Ford $5.6 billion (£3.1 billion) for the business.
Ford chief financial officer Don Leclair said: ‘This transaction reinforces our commitment to strengthening our balance sheet and investing in our core automotive business.
‘Hertz is a world-class company with an experienced management team. We look forward to working with the new owners and intend to maintain our strong commercial relationship with Hertz.’
The new owners are investment firms Clayton Dubilier & Rice (CD&R) and The Carlyle Group, with backing from Merrill Lynch Global Private Equity. The deal is subject to regulatory approval and is expected to be completed by the end of the year.
George Tamke, an operating partner at CD&R, said: ‘The company’s underlying strengths, an exceptional global brand, premium pricing supported by superior customer service and a history of industry innovation, form a strong platform on which to pursue further growth initiatives.’
And the company’s managing director, Gregory Ledford, said: ‘We have been looking at Hertz for more than three years and believe it fits squarely within our investment strategy – a complex corporate divestiture of a market leading business with a powerful franchise and opportunities for profitable growth.’
In the UK, Hertz ranked in seventh place in this year’s Fleet News Daily Rental Guide, to Britain’s largest rental firms, operating an estimated 13,800 vehicles.
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