Hertz has completed the purchase of Dollar Thrifty for approximately US$2.3 billion – about twice what it offered two years ago – and will sell it existing budget brand Advantage, to to Franchise Services of North America and Macquarie Capital. Earlier attempts by Hertz to buy the budget car rental company were blocked by regulators.
Mark Frissora, Hertz Chairman and Chief Executive, said: “We will be a stronger global competitive player with a full range of rental options not only in the USA but in Europe and other markets, given Dollar Thrifty’s strong international presence.”
Hertz also recently announced partnerships to give global car rental benefits to frequent flyers with Turkish Airlines and Royal Jordanian.
The merger of Hertz and Dollar Thrifty will save about $160 million a year and Hertz said it would enable it to expand. The deal will leave just three major players – Hertz, Avis Budget and Enterprise – controlling the majority of the US car rental market.
