Hertz Global Holdings announced that private equity companies Clayton, Dubilier & Rice, Carlyle Group and the Bank of America Merrill Lynch have sold their shares in the car rental agency for $1.24 billion.
CD&R, Carlyle and Bank of America Merrill Lynch have sold their remaining 49.8 million shares for $24.96 each, with CD&R and Carlyle being the second and third largest Hertz shareholders. Bank of America Merrill Lynch, CD&R and Carlyle Group purchased Hertz in December 2005 from Ford for $5.6 billion, reaching a total sum of $15 billion including the debt.
In 2012 Hertz Global Holdings managed to finally close a deal and purchase Dollar Thrifty Automotive Group, offering $2.6 billion. The company has tried more than 5 years to buy Dollar Thrifty, and the final price was more than double what Hertz offered in 2010. This is considered the last agreement between US car rental companies that regulators would accept.
“We are pleased to have finally reached an agreement with Dollar Thrifty after a lengthy — but worthwhile — pursuit,” CEO Mark Frissora said in the statement back then. “We have always believed that a combination with Dollar Thrifty is the best strategic option for both companies.”