Hertz Completes Acquisition Of Donlen Corporation

Hertz Global Holdings, Inc. announced on September 1 that it has completed the acquisition of Donlen Corporation, a provider of fleet leasing and management services. The acquisition was funded by $177 million in cash proceeds from Hertz and the assumption of $770 million in Donlen fleet debt.

Donlen provides Hertz an immediate leadership position in long-term car, truck, and equipment leasing and fleet management. This transaction is part of the overall growth strategy of Hertz to provide flexible transportation programs for corporate and general consumers.

Mark P. Frissora, the Chairman and Chief Executive Officer of Hertz, said, "The acquisition of Donlen is consistent with the evolution of Hertz's asset-light, technology focused business model and is part of the Company's overall growth strategy to provide the most flexible transportation programs for corporate and retail customers. Integrating Donlen into the Hertz family of products gives us a yearly and multi-year offering that complements our current core competencies of...car sharing and car rental options and provides the Company with a more stable revenue stream and new adjacent markets to leverage our existing business model."

With more than 144,000 vehicles under lease and management across the United States, Canada, and Mexico, Donlen generates revenue through its diversified lease portfolio and fee-based fleet management and services business. For over a decade, Donlen has posted consistent increases in pre-tax income, and has generated gross billings of approximately $920 million and revenues of approximately $350 million. The transaction is immediately accretive* to Hertz's earnings and is EVA positive in year one.

(* The increase in value attributable to interest accrued but not paid--example: discounted bonds earn interest through accretion until maturity.)

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