Localiza buys Hertz Brazil
Localiza, Brazil's leading car rental company, has acquired Hertz Brazil, and is entering in a strategic alliance with Hertz in other markets. The acquisition is valued at 337 million reals ($100 million), based on the company’s equity and debt. A final price will be determined based on its balance sheet on the closing of the transaction.
The acquisition adds around 9,200 vehicles to Localiza’s fleet, of which 3,700 cars in fleet rental and 5,500 in car rental. Hertz Brazil has 42 locations (not counting franchises), 16 of which at airports.
The deal seals a global pact between Localiza and Hertz, which will see them use the shared brand Localiza Hertz in Brazil. Hertz will use the Localiza brand at US and European airports with significant Brazilian passenger flow.
Both companies have also concluded a referral agreement which will see Localiza clients served by Hertz outside South America, and Hertz clients by Localiza in Brazil. Both it and the brand cooperation agreement have a runtime of 20 years, after which they may be renewed for another two decades.
The alliance includes the exchange of technology, know-how and personnel, but does not entail either company acquiring stock in the other.
| 12/12/2016 | Frank Jacobs