Ford To Sell Hertz To Private Equity Group

September 22, 2005 — Ford Motor Co., Dearborn, Mich., will sell its wholly owned subsidiary, The Hertz Corp., which includes construction and material handling equipment rental business Hertz Equipment Rental Corp., to an investor group of leading private equity firms, including Clayton Dubilier & Rice, The Carlyle Group, and Merrill Lynch Global Private Equity. Under the terms of the agreement, Ford will receive $5.6 billion for the equity of Hertz in a transaction valued at approximately $15 billion including debt.

 

“This transaction reinforces our commitment to strengthening our balance sheet and investing in our core automotive business,” said Executive Vice President and CFO Don Leclair. “Hertz is a world-class company with an experienced management team. We look forward to working with the new owners and intend to maintain our strong commercial relationship with Hertz.”

 

In connection with the transaction, Hertz plans to commence a cash tender offer for up to $2.3 billion of certain of its outstanding debt securities — certain other Hertz debt will be refinanced. The purchase of Hertz is subject to customary conditions, including applicable regulatory approvals, and is anticipated to be completed by the end of the year.