Hertz Global Holdings announced Friday its acquisition of fleet management company Donlen Corp., which required nearly $1 billion in financing, is complete.
Hertz, in Park Ridge, said the acquisition is part of its growth strategy, specifically in the area of long-term leases. The company paid $177 million in cash, and took on $770 million in debt from Donlen, to complete the transaction.
Mark Frissora, chairman and CEO of Hertz, said the acquisition is “part of the company’s overall growth strategy to provide the most flexible transportation programs for corporate and retail customers.”
Donlen adds 144,000 leased vehicles to the Hertz portfolio, along with a fee-based fleet management and service business. In 2010, Donlen generated revenue of approximately $350 million.
“As the largest general-use car rental brand worldwide, and one of the largest equipment rental businesses, Hertz provides us with advantages that are unmatched in the marketplace,” said Gary Rappeport, CEO of Donlen. “Our customers and our employees will benefit from the many synergies that exist between our two companies.”
Hertz expects the transaction to become accretive immediately.