Clayton, Dubilier & Rice, Inc. (CD&R), The Carlyle Group and Merrill Lynch Global Private Equity (MLGPE), have reached a definitive agreement with Ford Motor Company (NYSE: F) to acquire The Hertz Corporation (Hertz), the world’s largest vehicle rental organization, in a transaction valued at $15 billion.
George W. Tamke, a CD&R Partner, will serve as chairman of the Board of Directors. The transaction is subject to normal regulatory approvals and is expected to close by year end.
Tamke 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.”
Gregory S. Ledford, Carlyle Managing Director, said, “We welcome the opportunity to work with this storied company, the number one brand in the global auto rental industry. In addition, we are delighted to partner with the company’s management team and employees to support the next phase of Hertz’s growth.”
“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,” said David H. Wasserman, the partner who led the transaction negotiations for CD&R.
“We look forward to working with our equity partners and Hertz management for the company’s continued success,” said Nathan C. Thorne, president of MLGPE.
Craig R. Koch, Hertz Chairman and Chief Executive Officer, said, “We are pleased to be partnering with an outstanding group of financial and operating investors who understand our business and are committed to supporting our continued growth, success and value creation.”
The investor group was advised by Deutsche Bank AG, Lehman Brothers Inc. and Merrill Lynch & Co., Inc. Debevoise & Plimpton LLP provided legal counsel.