Investor Relations

Press Release

Hertz Completes Acquisition of Advantage Rent A Car
Hertz to Initially Operate 20 Advantage Locations* in Key U.S. Leisure Travel Markets

PARK RIDGE, NJ, Apr 09, 2009 (MARKET WIRE via COMTEX) -- Hertz Global Holdings, Inc. (NYSE: HTZ) ("Hertz"), the operator of the world's largest general use car rental brand, announced today that it has completed the acquisition of Advantage Rent A Car assets for approximately $33 million. Advantage generated full year 2008 revenues of about $146 million.

Hertz will operate 20 Advantage locations, initially, and the Company acquired the rights to the Advantage brand name (including trademarks, copyrights, etc.), website, and other assets. The acquisition will be instrumental in Hertz's long-term growth strategy, and meets several strategic objectives, which include:

  • Leveraging Advantage's presence in all of the top leisure states: Florida, California, Hawaii, Arizona and Colorado and in six of the Top 10 leisure markets: Orlando, Denver, Phoenix, Los Angeles, San Diego and Honolulu;
  • Further expansion into the price-oriented travel demographic through higher penetration of 3rd party online bookings. Advantage had more than 17% market share on Expedia, Travelocity, Orbitz, Cheap Tickets, Priceline retail and Hotwire retail. Advantage's 3rd party online market share in several key leisure markets ranges from 10% in Orlando to 28% in Denver and 34% in Salt Lake City;
  • A means for Hertz to further penetrate online booking engines without negatively affecting Hertz's core business;
  • Providing Hertz a second brand to sell to corporate accounts and to market with key travel partners;
  • Extending the useful life of vehicles in Hertz's rental fleet for Advantage's fleet needs.

Mark P. Frissora, Hertz's Chairman and Chief Executive Officer, commenting on the acquisition, said, "Hertz realized significant value for the Advantage assets we have acquired. By combining our operations excellence and expense discipline with Advantage's leisure market focus, we forecast generating double-digit EBITDA margins within the next two years, translating to a 2x EBITDA multiple, which is favorable compared with other car rental acquisitions. The upside growth potential for the price-oriented leisure market and our ability to leverage Advantage with corporate accounts and travel partners make this acquisition both financially and strategically advantageous for Hertz."

On March 31st, Hertz prevailed against another bidder in a U.S. bankruptcy court auction for the assets of Advantage Rent a Car. Advantage operated primarily from rental locations at key tourist travel destinations in the U.S. The Bankruptcy Court formally approved Hertz's bid April 6, 2009.

The Hertz Corporation, a subsidiary of Hertz Global Holdings, Inc. (NYSE: HTZ), is the world's largest general use car rental brand, operating from approximately 8,500 locations in 141 countries worldwide. Hertz is the number one airport car rental brand in the U.S. and at 42 major airports in Europe, operating both corporate and licensee locations in cities and airports in North America, Europe, Latin America, Australia and New Zealand. In addition, the Company has licensee locations in cities and airports in Africa, Asia, and the Middle East. Product and service initiatives such as Hertz #1 Club Gold®, NeverLost® customized, onboard navigation systems, SIRIUS Satellite Radio, and unique cars and SUVs offered through the company's Prestige, Fun and Green Collections, set Hertz apart from the competition. In 2008, the Company launched Connect by Hertz, entering the global car sharing market in London, New York City and Paris. Hertz also operates one of the world's largest equipment rental businesses, Hertz Equipment Rental Corporation, offering a diverse line of equipment, including tools and supplies, as well as new and used equipment for sale, to customers ranging from major industrial companies to local contractors and consumers from approximately 350 branches in the United States, Canada, China, France and Spain.

* Hertz will initially operate the Advantage brand in the following cities: Salt Lake City, Phoenix, Denver, Tucson, Colorado Springs, San Antonio, Los Angeles, Seattle, Maui, Honolulu, San Diego, Reno, Burbank, Palm Springs, Orlando, Ft Meyers (4 Hotels, 1 additional location).

SOURCE: The Hertz Corporation