Park Ridge, New Jersey-based Hertz Global Holdings Inc. is set to acquire Dollar Thrifty Automotive Group Inc. Dollar Thrifty said this week that it accepted a new $1.43 billion offer from Hertz. In April, Hertz had offered $41-per-share, but the new offer is for $50-per-share. Hertz has been battling Parsippany-based Avis Budget Group Inc. to acquire Dollar Thrifty.
If Hertz ultimately acquires Dollar Thrifty, the company will have a third more sites around the world for a total of 9,800 car rental sites. According to the Los Angeles Times, Hertz is already the largest car rental company, but wants to acquire Dollar in order to expand on its share of the leisure and budget travel market.
Dollar Thrifty’s customers are mostly vacationers looking for a good deal on a car rental. Hertz’s $7.1 billion revenue last year was split between business and vacation travelers. Last year, Dollar’s revenue was $1.55 billion.
According to the Los Angeles Times, the current effort by Hertz to acquire Dollar Thrifty is the most recent step in a decade-long movement toward consolidation in the car rental industry.
Dollar Thrifty has pushed back a special shareholders’ meeting to vote on Hertz’s proposal to September 30. If they vote yes, Dollar Thrifty will become a wholly-owned unit of Hertz.
Dollar Thrifty accepts Hertz’s new $1.43 billion offer (Los Angeles Times)