Ford to Sell Hertz for $5.6 Billion
NEW YORK – Ford Motor Co. said on Sept. 12 it has agreed to sell its auto rental subsidiary, Hertz Corp., to a group of private equity firms for $5.6 billion, according to Reuters. Ford said it will sell all of its Hertz shares to the group composed of Clayton Dubilier & Rice, The Carlyle Group, and Merrill Lynch Global Private Equity. Including debt, the transaction is valued at $15 billion, Ford said. Ford said it expects to complete the purchase by the end of the year. George Tamke, a Clayton Dubilier & RicePartner, will serve as chairman of the board of directors, the company said. In June, Hertz filed a preliminary document with the U.S. Securities and Exchange Commission for an initial public offering. Ford has said it would divest its remaining ownership interest in Hertz after the IPO. However, buyout firms, flush with cash, swooped in on the transaction, granting more compelling offers for Ford's unit than the IPO market. Clayton Dubilier & Rice, Carlyle, and Merrill competed against several private equity firms in the bidding for Hertz.