In a deal combining two of the most prominent U.S. car-rental brands, Dollar Thrifty Auto Group agreed to a cash-and-stock buyout by Hertz Global Holdings, valuing the company at $41 a share, the companies said Monday.
Dollar Thrifty shares closed Friday at $38.85, putting the offer from its Park Ridge, N.J., peer at a 5.5% premium. A year ago, Dollar Thrifty shares were trading at $2.55.As of Dec. 31, Tulsa, Okla.-based Dollar Thrifty had nearly 27.5 million shares outstanding, which would value the deal at $1.13 billion.
The deal price is comprised of 80% in cash and 20% in Hertz stock.
"Together we will be able to compete even more effectively and efficiently against other multi-brand car-rental companies, offering customers a full range of rental options in the U.S.," Hertz /quotes/comstock/13*!htz/quotes/nls/htz (HTZ 14.70, +0.01, +0.07%) Chairman and Chief Executive Mark Frissora said in a Monday statement.
The merger is subject to conditions including regulatory clearances and approval by Dollar Thrifty /quotes/comstock/13*!dtg/quotes/nls/dtg (DTG 42.83, -0.24, -0.56%) shareholders, the companies said. Financing for the acquisition is in place, they said.
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Barclays Capital is lead financial adviser for Hertz, with Bank of America Merrill Lynch also advising. Dollar Thrifty is advised by J.P. Morgan and Goldman Sachs.
The deal price is comprised of 80% in cash and 20% in Hertz stock.
"Together we will be able to compete even more effectively and efficiently against other multi-brand car-rental companies, offering customers a full range of rental options in the U.S.," Hertz /quotes/comstock/13*!htz/quotes/nls/htz (HTZ 14.70, +0.01, +0.07%) Chairman and Chief Executive Mark Frissora said in a Monday statement.
The merger is subject to conditions including regulatory clearances and approval by Dollar Thrifty /quotes/comstock/13*!dtg/quotes/nls/dtg (DTG 42.83, -0.24, -0.56%) shareholders, the companies said. Financing for the acquisition is in place, they said.
What Paulson taught Zuckerman about investing
Author of the Greatest Trade Ever, Gregory Zuckerman, explains how small investors can learn from the quirky outsider tactics of John Paulson, the hedge fund manager at the center of the Goldman Sachs subprime trading scandal.
Barclays Capital is lead financial adviser for Hertz, with Bank of America Merrill Lynch also advising. Dollar Thrifty is advised by J.P. Morgan and Goldman Sachs.
From MarketWatch.com
