Dollar Thrifty deal likely to save Hertz more than $180mn - Car Rental News
Dollar Thrifty deal likely to save Hertz more than $180mn
Car Rental News - 05/08/2010
Hertz provides more details on impending acquisition.
Hertz Global Holdings could see cost savings of more than 180 million dollars soon after it takes over Dollar Thrifty Automotive Group. In fact, Mark Frissora, CEO and chairman of Hertz, says this figure is actually at the low end of the estimated range for cost savings arising out of the takeover of Tulsa-based Dollar Thrifty.
Mr Frissora held an earnings conference on Wednesday in which he shared more details on the upcoming deal. In the conference, he said the company has a detailed analysis of the cost savings it expects and Hertz fully expects to save at least 180 million dollars. What’s more, Frissora reckons that some 70 per cent of those savings will be achieved within the first year.
Hertz initially bid for Dollar Thrifty at 41 dollars per share. This was followed by Avis Budget Group putting in its own bid at 46.50 dollars a share. Dollar Thrifty staff in Tulsa, where the company employs 700 people, are concerned, and want to know where these cost savings will be made. Hertz already has 1,700 employees in Oklahoma City.
Frissora says the deal would lead to savings through fleet consolidation, as well as information technology, and finance operations. He also thinks management could be trimmed. He spoke of a conservative estimate for cost savings from fleet consolidation of 70 million dollars.