Ford Sells Hertz Corporation in $US 15 Billion Deal

Ford Motor Company has announced that the firm will sell all of the shares of common stock of its wholly owned subsidiary, The Hertz Corporation, in a transaction valued at approximately $US15 billion including debt. The acquiring investor group is composed of Clayton Dubilier & Rice, The Carlyle Group and Merrill Lynch Global Private Equity. Under the terms of the agreement, Ford will receive $US 5.6 billion for the equity of Hertz. “This transaction reinforces our commitment to strengthening our balance sheet and investing in our core automotive business,” said Executive Vice President and Chief Financial Officer Don Leclair. “Hertz is a world class company with an experienced management team. We look forward to working with the new owners and intend to maintain our strong commercial relationship with Hertz.” The purchase of Hertz is subject to customary conditions, including applicable U.S. regulatory approvals, and is anticipated to be completed by year end. Hertz operates the largest general use car rental business in the world and one of the largest industrial, construction and material handling equipment rental businesses in North America, based on revenues.