Hertz to acquire smaller rival Donlen Corp for $250 million
18 Jul 2011
Hertz Global Holdings, the world's largest car rental company, yesterday signed a deal to buy vehicle-fleet leasing and management company Donlen Corp, for $250 million, to expand its car rental and management services.
The proposed acquisition also includes the assumption of about $680 million of Donlen's debt outstanding, taking the deal value to a total of about $930 million.
Based in Northbrook, Illinois, privately held Donlen leases and manages more than 144,000 vehicles across the US, Canada and Mexico. Donlen has posted consistent growth in pre-tax income since 2000, including 2008 and 2009 in the midst of the recession.
Donlen generated gross billings of approximately $920 million and revenues of approximately $350 million. Since 1965, Donlen has offered its clients highly personalised and responsive customer service. Donlen has been recognised as one of Crain's Chicago Business "List of 20 Best Places to Work in Chicago" each year from 2009-2011.
The proposed acquisition will expand Hertz's portfolio of rental vehicles and make it a leader in long-term car, truck and equipment leasing and fleet management for corporate customers.
Hertz leases and manages more than 500,000 vehicles in its fleet in the US and Europe, and about 800,000 vehicles total when licensees are included. Hertz will now be able to expand its fleet management capability to Europe and other international markets.
