Hertz to Acquire Dollar Thrifty

Car rental giant Hertz Global Holdings

is about to buy rival Dollar Thrifty Automotive Group

for roughly $2.3 billion. According to the

, the purchase will give Hertz more ways to attract business and leisure travelers, along with giving the company an expanded international presence. Following the news, Dollar Thrifty's stock jumped 7 percent in premarket trading on Monday. Hertz revealed that it will pay $87.50 for each Dollar Thrifty share, which comes out at an eight percent premium on Dollar Thrifty's Friday closing price of $81 per share. Hertz Chairman and Chief Executive Officer Mark P. Frissora released a statement saying that, "We are pleased to have finally reached an agreement with Dollar Thrifty after a lengthy – but worthwhile – pursuit. We have always believed that a combination with Dollar Thrifty is the best strategic option for both companies. The transaction provides Hertz instant scale with two new, well-established brands with airport concession infrastructure in the mid-tier value segment. We'll be a stronger global competitive player with a full range of rental options not only in the U.S. but in Europe and other markets given Dollar Thrifty's strong international presence. In addition, we look forward to moving efficiently and swiftly through the regulatory process having reached an agreement to divest our Advantage brand." Hertz certainly has been busy with acquisitions as of late. Just five months ago, the company purchased New York-based rental company Arpielle Equipment, which was focused primarily on rentals to the construction and industrial markets. Arpielle was Hertz's fifth acquisition in the 12 months leading up to that point, suggesting that the company is constantly looking to diversify. “Arpielle gives Hertz Equipment Rental Corporation [HERC] an even larger footprint in the metropolitan New York City equipment rental market, the largest in the nation, and access to a broader range of contractor business and larger infrastructure projects,” said Frissora at the time. “While the acquisition increases our overall market share immediately, HERC will begin supplementing Arpielle's equipment offerings with the larger earthmoving pieces, aerial booms, generators and pumps in our fleet.” In January, Hertz acquired TV equipment and rig lightning company Cinelease, with Frissora recognizing the speed of growth of the TV rental industry. Evidently, this CEO is able to see potential quickly and he is not afraid to act. On Monday morning, Hertz traded at about $13.15, up roughly 1.15 percent. Dollar Thrifty traded at about $81, up roughly 1.7 percent.