Hertz to buy Dollar Thrifty

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Updated: 8/27/2012 10:38 am Published: 8/27/2012 10:33 am

NEW YORK (AP) - Rental car company Hertz is buying its rival Dollar Thrifty Automotive Group Inc. for approximately $2.3 billion.

Dollar Thrifty's stock jumped more than 5 percent in premarket trading Monday.

Hertz Global Holdings Inc. said late Sunday that it will pay $87.50 for each Dollar Thrifty share. That's an 8 percent premium to the company's Friday closing price of $81 per share.

On Thursday media reports said Hertz of Park Ridge, N.J., was considering a new bid for Dollar Thrifty, a Tulsa, Oklahoma-based company it had pursued for two years.

Hertz is also selling its Advantage business to rental car company Franchise Services of North America and Macquarie Capital. The Advantage closing is conditioned upon Hertz completing the Dollar Thrifty buyout.

Both Hertz and Dollar Thrifty's boards have unanimously approved the deal, which still needs antitrust clearance from the Federal Trade Commission.

Tulsa Metro Chamber President Mike Neal released the following statement about the sale:

"Dollar Thrifty Automotive Group (DTAG) has maintained a significant presence in Tulsa since launched in 1958. When Chrysler purchased Thrifty and Dollar more than 20 years ago, the low cost of doing business in Tulsa could not be matched. This remains true today. Tulsa maintains a competitive advantage with its highly-skilled workforce, low cost of living and support available to new and existing companies.

Tulsa is fortunate the region has served as DTAG's headquarters since 1994. The Chamber applauds the work of DTAG's CEO, Scott Thompson, the leadership team and employees who have had great success in returning DTAG's operations to profitability.

The company and its employees remained resilient through tough economic periods in early 2008 and more recently during protracted takeover attempts. Throughout these past few years and in recent weeks, the Chamber has supported DTAG leadership and its employees through active dialogue with company executives in an effort to assist with finding the best outcome for employees, investors and the Tulsa region.

The Chamber welcomes Hertz as a new corporate partner in Tulsa and will aggressively work to ensure the company's integration plans result in positive protections for the Tulsa area workforce.

The employees of the rental car industry are a tremendous asset in the travel industry sector, which is closely aligned with the vital aviation and aerospace industry in the Tulsa region. These influential sectors make the Tulsa region a powerful competitor on a global scale. Dollar Thrifty currently provides $100 million in payroll to more than 780 employees in the Tulsa region and in local services outsourced. These direct jobs also support an additional 2,755 indirect jobs in the Northeast Oklahoma region.

Employees in the rental car industry have strong community involvement in the region. Through DTAG leadership service on the Chamber Board and partnership in Tulsa's Future, the company has been an active partner in realizing the Chamber's mission of growing new and retaining existing jobs in the Tulsa region. We anticipate this positive partnership will continue under the new ownership.

The Chamber looks forward to working with Hertz as the company integrates operations in Tulsa. We will assist Hertz leadership during the transition by reinforcing the retention of the highly-trained DTAG workforce."

(Copyright 2012 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)

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