Hertz Global Holdings, Inc. announced Nov. 25 it has entered into a stock and asset purchase agreement to sell substantially all of the assets of its wholly-owned subsidiary, Donlen Corporation, a fleet management leader, to Athene Holding Ltd., a leading financial services company, for an anticipated cash payment of $825 million subject to adjustments for fleet equity, working capital and assumed debt.
Hertz anticipates these adjustments will result in a purchase price at closing of at least $875 million.
"The agreement to sell our Donlen business is another significant accomplishment for Hertz during our financial restructuring, following the $1.65 billion debtor-in-possession financing and $4 billion fleet financing recently approved by the Bankruptcy Court," said Hertz President and CEO Paul Stone. "As we continue to work to position Hertz and our business for the future, we believe this transaction provides significant additional flexibility to help us achieve our strategic and financial objectives. At the same time, customers will continue to be able to benefit from Donlen's commitment to excellence in fleet management solutions and service."
"We are pleased with this opportunity to position Donlen's business for continued long-term success and appreciate Athene's commitment to continuing our tradition of high-quality service, customer satisfaction and award-winning fleet management, working with our talented employees," said Donlen President Tom Callahan. "Our fleet customers remain our top priority and we look forward to continuing to be a trusted partner providing high levels of customer satisfaction, impactful technology and fleet solutions."
"We are excited about the opportunity to partner with the strong team at Donlen to acquire an industry-leading fleet management franchise that is well-suited to meet our objective of sourcing attractive, differentiated long-term investments for our growing portfolio," said Athene Chairman and CEO Jim Belardi. "In support of the business, strengthening the balance sheet and its significant growth opportunity, we are making an upfront investment of...