Under the terms of the proposed consent order that was approved by the FTC for public comment, Hertz is required to divest its Advantage business, selected airport concessions and certain other assets following the closing of the acquisition.
“We have reached a compelling agreement with the FTC and are pleased to finally move forward as one company,” said Hertz chairman and chief executive officer, Mark P. Frissora.
“We have always believed that a combination with Dollar Thrifty is the best strategic option for both companies, and we look forward to becoming a stronger global competitive player in the industry.”
He added that the combination of Hertz and Dollar Thrifty will create a global rental car firm offering customers a range of rental options. Hertz, according to Frissora, will provide Dollar Thrifty with the resources to expand its “value” leisure brands in car rental markets around the world, while Dollar Thrifty will provide Hertz scale with two new brands with airport concession infrastructure.
As previously announced, Hertz has reached an agreement to sell certain assets, to Adreca Holdings a subsidiary of Macquarie Capital which is operated by Franchise Services of North America, an operator of car rental brands, including U-Save Car & Truck Rental, Rent-a-Wreck of Canada, Practicar and Xpress Rent A Car.
Hertz has also agreed to use its “commercially reasonable efforts” to ensure that Adreca at 13 locations and either Adreca or another third party at an additional 13 locations, has the right to an on-airport operation. Hertz said it “hopes” to be able to continue operating both the Dollar and Thrifty brands on airport at a number of these airports, but pointed out that one or other of these businesses may have to operate away from airport sites for some period of time. But the company stressed that this would “never” be the case for Hertz businesses.
