Hertz Global Holdings will purchase Dollar Thrifty Automotive Group for $1.2 billion in stock and cash. The US rental car market is now comprised of three giants: Enterprise (which includes Alamo and National), Avis Budget, and Hertz Dollar Thrifty. (Other companies don’t come close in business volume.) Reuters has more:
U.S. car rental firm Hertz Global Holdings Inc (HTZ.N) had agreed to buy smaller rival Dollar Thrifty Automotive Group Inc (DTG.N) for about $1.2 billion to boost its presence in the leisure rental market.
The deal marks a significant consolidation for the car rental industry, which is starting to recover from the global economic downturn helped by a pickup in travel and the used car market. The combined company will now have a single publicly listed U.S. company — Avis Budget (CAR.N) — to compete against.
“Dollar Thrifty also has a strong international presence, complementing our global footprint, which enables us to utilize a recognized brand to accelerate our leisure rental strategy in Europe and other markets,” Hertz Chief Executive Mark Frissora said in a statement.