Thursday, 09 May 2013 18:00

Carlyle Group Sells Stake in Hertz

The Carlyle Group is selling its stake in Hertz Global Holdings, Inc., approximately 50,000 shares held by investment funds associated with The Carlyle Group. Goldman Sachs will act as the sole underwriter in a registered public offering of those shares. Hertz said the sale of stock by the investment firms represents practically the entire interest the funds held in Hertz stock.

Reuters reported that prior to the sales, CD&R and Carlyle were the second and third largest shareholders in Hertz, respectively, according to Thomson Reuters data. The three investment funds bought Hertz from Ford Motor Co. in 2005 for $5.6 billion.

Hertz operates its car rental business through the Hertz, Dollar and Thrifty brands from approximately 10,460 locations worldwide. The company claims to have the second largest market share in the off-airport car rental market in the United States.

The Carlyle Group purchased DuPont's Performance Coatings unit earlier this year and operates the business as Axalta Coating Systems. Carlyle acquired Service King in the summer of 2012.