Some Interesting Points From The Hertz Dollar Thrifty Deal

Hi all,

Hopefully the longest, drawn out takeover of all time will finally reach a climax this year. Hertz’s buyout of Dollar Thrifty will probably hit 3 years before all is said and done.

Many people within the industry are sceptical about the deal that turns the car hire market from 4 players to just 3 but only time will tell. Today I have spent a few hours looking through the proposed deal and thought I’d pick out a few details that I think are interesting.

Purchase Price

  • $87.50 per share purchase price (all cash)
  • P h Equity Value of $2.6 billion
  • Corporate Enterprise Value of $2.3 billion

Deal Structure

  • 100% cash consideration
  • No financing contingency – fully committed financing in place
  • Tender offer
  • Transaction close expected in Q4:12

Key Conditions

  • Antitrust clearance
  • Hertz has reached a definitive agreement to divest Advantage
  • Requires more than 50% of Dollar Thrifty’s outstanding shares be tendered

Transaction Benefits

  • Unanimously approved by the Boards of both companies
  • Premium value in cash to DTG shareholders
  • Highly attractive transaction for HTZ owners positive EVA
  • Including impact of Advantage divestiture (~$30 million of Corp. EBITDA)

Anticipated Timeline

File tender offer materials with the SEC and launch tender offer Early September
Receive FTC clearance for the transaction1 Mid-October
Complete tender offer and purchase Dollar Thrifty shares Mid-to-late October
Complete short-form merger Mid-to-late October

In Numbers

Hertz Dollar/Thrifty
Corporate Revenue $7.1B $1.5B (60% Dollar/40%


Franchise Revenue $3.7B $700M
Avg. Corp. Fleet Units 615,600 107,154
Top 3 OEM Suppliers GM, Nissan,Toyota Ford, Chrysler, GM
Rental Car Locations 8,500 280
Employees 23,900 5,900
Markets Served Premium Commercial, Premium Leisure,

Insurance Replacement, Commercial Leasing,


Value Leisure

Monthly/Hourly car rental


Value Leisure

U.S.Airport Market Share 26% 11%

The final piece of info that I thought was interesting was this “Hertz expects to be on credit watch initially, but does not anticipate credit rating downgrade”.

Some interesting stuff there and I’m sure other pieces of information will come to light, especially when the FTC release their own report detailing why they allowed the deal to go through, as always I’ll keep you up to date.



 car hire USA

This Is How I Think Hertz Will Use Dollar & Thrifty

Hi all,

The buzz around the Hertz Dollar Rent A Car deal hasn’t really died down yet, yesterday both companies released statements confirming the deal at $87.5 per share equating to a buyout of $2.6 Billion, Hertz also confirmed that they have a buyer for their low cost brand Advantage Rent A Car who equate to about 1% of Hertz’s overall sales.

So what is Hertz’s plan for both Dollar Rent A Car and Thrifty Car Rental

USA car hire is basically split in to three sales tiers, Premium, Mid and Value. At present Hertz are competing in the Premium tier and through their Advantage brand, the value tier.

With the purchase of Dollar and Thrifty I believe they will attack all three markets.

The example above only includes suppliers that have made an impact in the UK outbound market it does not include value brands such as Fox Rent A Car, Payless Car Rental or Mid-Tier companies like Enterprise.

As you can see from the example above Hertz’s three pronged attack really allows them to compete in all tiers while at the same time protecting their Premium brand.

I also found it interesting that Hertz CEO Frissora confirmed they will position Thrifty as a “Spartan brand”, I assume this mean competitive?

Do you think the Hertz/Dollar deal is good for the consumer?



 Florida car hire

BREAKING: The Deal’s Done $87.5 Per Share, Total $2.6 Billion, Hertz Pay Dollar For Dollar

Hi all,

This weekend saw a whirlwind of stories regarding the Hertz/Dollar buyout saga with rumours of advanced negotiations taking place this weekend.

Information given to us this morning confirms that a deal has finally been agreed which will see Hertz purchase Dollar Rent A Car and Thrifty Car Rental for $87.5 per share making the deal worth an eye watering $2.6 Billion.

I am lead to believe that the deal will be concluded by the end of the year subject to FTC approval.

The deal raises a number of questions including -

What will happen to Hertz own budget brand Advantage Rent A Car?

update: have learnt that a deal to sell Advantage Rent A Car has been reached with the Franchise Services of North America Inc. and Macquarie Capital, the investment banking arm of Australia’s Macquarie Group Ltd, the amount is around $16 million representing a loss to Hertz of $17 million. The Franchise Services of North America already operate car rental brand U-Save car rental.

How does this deal effect Dollar Rent A Car’s future dealings with UK car rental companies?

The deal itself see’s Hertz increase its market share to cement its position as the number 2 US car rental company just behind Enterprise Car Rental.

I will of course update this post as more news becomes available.



Deja Vu In The Hertz And Dollar Rent A Car Deal

Hi all,

Its with a dreaded feeling of deja vu that I write this post, its over 3 months since I last spoke about the proposed Hertz/Advantage/Dollar/Thrifty takeover, sale thingy and still nothings really happened.

On the 1st August Hertz and DTAG (Dollar and Thrifty) released their quarterly reports, nothing odd about that and both companies had very good quarters. Dollar  reported a net income for the 2012 second quarter of $49.4 million, compared to net income of $42.5 million for the second quarter of 2011. The company also reported Corporate Adjusted EBITDA for the second quarter of 2012 of $88.3 million, up from $81.2 million in the second quarter of 2011. Hertz meanwhile reported second quarter 2012 worldwide revenues of $2.2 billion, an increase of 7.4% year-over-year. Both companies taking full advantage of a very buoyant second hand car market.

The part that was missing in both their second quarter market calls was any proper mention of firstly; the continued process of the merger between Hertz and Dtag and secondly; the proposed sale of Advantage Rent A Car (Hertz’s economy brand).

In their first quarter report Hertz mentioned they had been in talks with a potential buyer of Advantage Rent A Car, thought to be U-Save Car Rental but not confirmed. Rumour also had it that the sale would move forward very quickly but since then nothing seems to have happened… Could the deal of gone cold?

Hertz did state

Hertz remains engaged with the FTC to secure antitrust clearance to potentially acquire Dollar Thrifty, which requires, among other things, the divestiture of our Advantage business.

However Dollar’s CEO Scott Thompson according to popular blog auto rental news,

expressed unusual candor – and exasperation. Aside from joking about his hair loss over the issue, he said the company has lost employees and has been negatively impacted when negotiating with strategic partners. He said no offer has been extended, and called for an end to this three-year-long saga.

So we look no closer to an end to the on off saga, but I will of course keep you updated if anything else arises.



 car hire USA

How Do USA Car Hire One Way Rentals Work?

Hi all,

Definition: A one way rental (OWR); is any USA car hire collected at one location but dropped off at a different location.

For example; collected from Orlando International Airport in Florida but returned to Miami International Airport.

Today’s post will cover one way rentals, how they work and how they effect your car rental price. We’ll also take a look at the suppliers for popular one way rentals and see who offers any one way rental deals.

Firstly enter your details in to our booking engine, remember to place the alternative drop location in the appropriate field.

The next page returned will show you the cost of the vehicles available with each supplier; please note that the one way rental price is not included within these rate. All one way rental charges are paid for locally directly to the supplier.

Once you’ve found the vehicle you are interested in, tick the appropriate insurance box and click on the “book now” button.

The next page shown is our one way rental alert page; this page will display to you the cost of the one way rental. Remember that one way rental charges differ per supplier, so sometimes it pays to check each suppliers charge.

The alert will ask you to confirm that you agree to the charge and then the normal booking process continues.

Remember; the one way rental charge is paid locally directly to the supplier.

One way rental deals*

When you’re looking at long distance one way rentals; National Car Rental offer a set one way rental fee of $250.00 this deal can save you up to 50% on road trips and is unique to this supplier.

Dollar Rent A Car and Alamo Rent A Car through offer free one way rentals between California and Nevada (please note Alamo’s peak season one way rental charge for Convertibles out of San Francisco); so popular journeys such as Los Angeles to Las Vegas wont incur additional charges.

All our suppliers offer free one way rentals within the state of Florida, so you can fly in to Tampa with BA but fly out of Orlando without incurring additional fee’s.

*all one way rental deals are correct at the time of print, please check our terms and conditions for the latest one way rental costs.

Well I hope this helps make one way rentals a little easier to understand. If you have any questions please comment below.



 car hire USA

Why Do Car Hire USA Supplier’s Require A Credit Card For Collection?

Hi all,

Its a question we get asked quite a bit, so I thought I’d try to address it today.

Why do suppliers require a credit card for collection?

To collect a vehicle from our suppliers you will require 3 things

1) Your voucher (either via our app or printed from our website)

2) Your full driving licence (both parts)

3) A credit card in the name of the lead driver.

The credit card is required to validate the CDW/LDW part of your insurance. Suppliers purchase and provide insurance on the car rental by checking for the following key items

1) Bankruptcy

2) Criminal record

3) Financial stability

4) Address stability

5) Rental location

6) Rental length

The credit card is used to help check fianicial creditability, as you can imagine the supplier is handing over $20k cars and need to be satisfied they will be fully covered in case of an accident.

So I hope this helps explain why the supplier requires a credit card imprint. Remember you can still pay for your Car Hire USA on a debit card without charge.



 Florida car hire

New Advantage Rent A Car Suitor Appears

Hi all,

I’ve posted more about the Hertz Dollar buyout then any other topic I think… some may argue I went on a bit about our latest redesign and they’d have a point. ;-)

Anyway, Hertz have been seeking FTC approval for over 2 years now and part of the process seems to be the sale of Advantage Rent A Car.

Many people, including myself  have  speculated on who the eventual buyers will be however today Bloomberg citing an article on Mlex, stated that Hertz have reached an agree for the sale of Advantage Rent A Car to U-Save Car Rental.

U-Save, which has been running for 30 years now and operates out of 200 locations across the U.S. seem to be the FTC’s favourite to get the nod.

All this seems to point toward an impeding bid from Hertz, be it either directly to the board or directly to the share holders. Time will tell.



 Florida car hire

5 Things You Might Want To Pay For Before Collecting Your Rental Car

Hi all,

Although we offer a pre-paid USA car rental services there are certain items that can be purchased locally instead of in the UK. Today’s post is about 5 items that will probably work out cheaper to do before collection of the vehicle.


So you book the Economy vehicle but secretly you want a convertible, what you’ve decided you’re going to do is haggle with the person on the desk when you pick up the vehicle and get yourself a bargain…simple.

The only problem is, you’re not the only person to have this idea and even worse… the supplier know’s this! Don’t get me wrong you can sometimes pick up a bargain upgrade, however these bargains generally come around when you’re not after a specific category of vehicle; for example you could book the economy vehicle and be offered the “managers special”  for a 4×4 (mainly due to the fact that they have an abundant amount of sports utilities  that week) always remember though that the upgrade price offered is per day and not for the total duration.

The real problem comes when you want a specific category as the guys on the desk work on commission;  and you’re now at their mercy.

Generally I would say that if you want a specific category of vehicle then pre-book it here in the UK to avoid nasty surprises.

Additional Insurance (Tyres, Windscreen, Undercarriage)

Within our Silver and Gold offerings the insurances do not cover the tyres, windscreen, undercarriage or the keys.

Our suppliers offer an additional insurance locally to cover this, it is often called road safe or something similar and they will offer this to you at an additional charge roughly $6.95 + tax.

Our Platinum rate which you can prepay, covers these additions and can be purchased for as little as £15 per week a saving compared to purchasing locally of over £15 per week…

Additional Drivers

Pretty easy one this, if you need an additional driver on your rental its best to prepay it in the UK. Locally you will be charged $10-$15 per day plus tax on a 2 week holiday you’re looking at approximately$210.

Where as the difference between our Silver and Gold rates is a lot less than the £135 you’d  pay locally.

Sat Nav’s

You can rent a Sat Nav directly from the supplier for around $11.99 per day plus tax you have to take it for the full duration of your hire.

You can rent a Sat Nav from ourselves directly for £30 per week or prepay via our website to collect directly from the supplier prices vary but are generally more cost effective than purchasing locally.

Young Drivers

Now there’s really no comparison here, locally you will need to pay $25-$30 per day per driver plus tax if you are aged 21-24 to get yourself on the insurance. Over a 2 week holiday with 2 drivers that would cost an extra $840.00 !!!

However you’re in luck as offers a young drivers package  that halves the cost of the fee. It is definitely better to prepay this fee.

If you can think of any further items that a better prepaid please feel free to comment below.



 Florida car hire

Lets Have A Look At The Results Of The Zagat Car Rental Survey

Hi all,

Yesterday saw the results of the 2011/2012 Zagat car rental survey released, Hertz very much dominated proceedings winning top ratings for vehicles, reliability, service and popularity, netting the title of  Top Overall car rental company.

National Car Rental , who were rated best value, took second position for top overall car rental company just ahead of Avis. Enterprise won top billing for Deals and Promotions, Neighborhood Rentals and Car Pick-Up Experience, while Hertz won the remaining categories.

Lets take a quick look how our suppliers did.  Each supplier overall marks below are for Vehicles, Reliability and Service rated on a 30-point scale:

0 – 9 poor to fair
10 – 15 fair to good
16 – 19 good to very good
20 – 25 very good to excellent
26 – 30 extraordinary to perfection

I Inexpensive
M Moderate
E Expensive

Advantage Rent A Car

Typically one of the least expensive” if “not necessarily the best” is the consensus on this economy brand; views on its vehicles
vary (“clean and new” vs. “average”), ditto service, but “great deals” remain its “main advantage.

Vehicle: 18

Reliability: 20

Service: 16

Cost: I

Alamo Rent A Car

An online check-in system that lets you “pick the car you want”, “outstanding weekly and weekend specials” with discounts for
members of its Insiders program and “locations everywhere” cause customers to remember this Alamo; service can be “slow” and
some cars show a bit of “wear”, but on the whole, it’s a “reliable” bet.

Vehicle: 21

Reliability: 21

Service: 19

Cost: M

Budget Rent A Car

When you’re really on a budget”, this “no-frills” Avis sibling comes through with a “nice car selection”, “not-bad prices” and
“omnipresent locations”; faultfinders cite occasional “long” waits and say that despite the name, it’s “not always” the cheapest,
but it’s “worth checking.

Vehicle: 20

Reliability: 21

Service: 18

Cost: M

Dollar Rent A Car

If you just need a car and are not trying to impress”, this “decent” choice – one of the “cheapest of the national brands” – offers
“clean” (some say “bare-bones”) vehicles that “will get you there and back”; service is “friendly enough”, and becoming a Dollar
Express member “gets you better treatment.

Vehicle: 18

Reliability: 21

Service: 19

Cost: M

National Car Rental

Rated the No. 1 Bang for the Buck and No. 2 Overall in our Car Rental survey, this “reliable” renter provides “better-thananticipated” vehicles at “value” prices, but what you really “gotta love” is its Emerald Club loyalty program, which lets you “pick
from a lineup of cars” at many locations; “good service” further adds to a mostly “painless”, “satisfying” experience.

Vehicle: 23

Reliability: 24

Service: 22

Cost: M

Thrifty Rent A Car

When they say ‘thrifty’ they mean it” say adherents of this “solid, middle-of-the-road” outfit; fans cite “well-maintained” cars and
“great customer loyalty programs”, and though some report “slow” service from an “overworked, but nice” staff, if you’re looking
for “economical” wheels, this should “meet your needs.

Vehicle: 20

Reliability: 20

Service: 18

Cost: M

About Zagat

Started in 1979, Zagat Survey is the world’s leading provider of consumer survey-based information. With ratings and reviews based on a worldwide network of surveyors, Zagat has become the world’s most trusted source to help consumers make informed decisions about restaurants, nightspots, hotels, attractions and other leisure activities. Zagat surveyors are frequent, knowledgeable consumers in each of the categories they rate.

So congratulations to Hertz on a great set of results, with the eminent purchase of Dollar Rent A Car Hertz seem to going from strength to strength,



 car hire USA

Are Hertz Closer To Buying Dollar Thrifty Than We Thought?

Hi all,

Amazing!! Two days in a row and I’m not talking about the redesign, so you know something must have caught my attention…and it has…

Yesterday we spoke about the Hertz quarter 1 results and the effect they could have on future inbound business, well buried within the full report which can be viewed here were some very direct wording in regards to Hertz’s marathon pursuit of Dollar Rent A Car

Within the forward statement to investors was this little nugget

Among other items, such factors could include: our ability to obtain regulatory approval for and to consummate an acquisition of Dollar Thrifty Automotive Group; the risk that expected synergies, operational efficiencies and cost savings from a Dollar Thrifty acquisition may not be fully realized or realized within the expected time frame; the operational and profitability impact of divestitures that may be required to be undertaken to secure regulatory approval for an acquisition of Dollar Thrifty;

So Hertz are stating to investors that the acquisition of Dollar Thrifty could have an impact on their 2012 profit as they slimline the organisation, also looking at the report you can see a substantial amount has been spent on Acquisition related costs.

So popping on my deerstalker, I’m going to assume the following

  • Hertz will shortly announce an agreement with the FTC regarding the purchase of Dollar Thrifty.
  • We will see a fresh Hertz bid for Dollar Thrifty this quarter.
  • Hertz have found a buyer for Advantage Rent A Car (their value brand).

Now I’m no Sherlock Holmes but I’m pretty confident when I say Dollar Thrifty will become part of Hertz this year and I’m going to take a guess that either Sixt Rent A Car or Fox Rent A Car will be the new owners of Advantage Rent A Car.

What do you think?



 car hire USA

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