19.09.2005

Ford confirms Hertz sale

Ford has sold the Hertz Equipment Rental along with the rest of Hertz corp, to a consortium of private equity firms, including Clayton Dubilier & Rice, The Carlyle Group and Merrill Lynch Global Private Equity.

The deal is valued at around $5.6 billion for the equity of Hertz and a total value of approximately $15 billion including debt. The buyers are paying $2.3 billion in cash and assuming the remaining amount as a debt.

The group has said nothing about its plans for the equipment rental division, which is the third largest in the USA with revenues in the region of $1.3 billion.

It is understood however that the buyer’s main interest is the car rental division and at one point it looked as though Ford was considering a sale in parts.

With this in mind it is quite possible that equipment rental business will be put up for sale. Hertz equipment has 265 outlets in North America and a further 100 locations in France and Spain. The sale is exected to complete towards the end of this year.