Hertz, the No. 1 car rental company, is acquiring rival Dollar Thrifty Automotive Group Inc. for $1.27 billion in cash and stock, according to a report in The Wall Street Journal.
After beginning discussions last November, the companies approved the deal on April 25, according to newspaper.
Hertz plans to keep the Dollar and Thrifty brands. The acquisition is “really about having a multi-brand strategy in the leisure segment,” said Mark P. Frissora, Hertz chairman and CEO.
Buying Dollar Thrifty will help Hertz better use its fleet, give it a foothold in the mid-tier car rental market, increase its locations outside airports and let it push deeper into Europe, Frissora said.
According to the newspaper’s account, Hertz currently uses about 95 percent of its fleet during the week but only 30 percent to 40 percent during the weekend, he said. Dollar Thrifty, by contrast, uses most of its fleet during the weekend, when leisure travelers are most likely to rent, he said. The companies plan to combine fleets immediately.
Article Last Updated: April 26, 2010.
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A sports, travel and business journalist for more than 45 years, James has written the new car review column The Weekly Driver since 2004.
In addition to founding this site in 2004, James writes a Sunday automotive column for The San Jose Mercury and East Bay Times in Walnut Creek, Calif., and monthly auto review and wellness columns for Gulfshore Business, a magazine in Southwest Florida.
An author and contributor to many newspapers, magazines and online publications, co-hosted The Weekly Driver Podcast from 2017 to 2024.