Ford Motor Co. to buy the Hertz Corp. for 0.83 times revenue, The

Weekly Corporate Growth Report, Jan 29, 2001

The Deal: Ford Motor Co. has agreed to purchase the 18.5 percent of the Hertz Corp. it does not already own, for $35.50 a share. The move is an effort by Ford to intensify its focus on automotive services. After the news of the acquisition was announced, shares of Hertz dropped 6 cents to $34.81, while Ford shares gained 75 cents to close at $27.13.

Discussion: The Hertz Corp. is the world's No. 1 car rental firm, with about 6,500 locations in more than 140 countries and a fleet of about 525,000 vehicles. Airport rentals account for about 80 percent of its car rental revenues. Subsidiaries include Hertz Equipment Rental, which rents industrial and construction equipment, trucks and tools in North America and Europe; Hertz Claim Management, which handles liability claims for Hertz and others; and Hertz Technologies, which sells telecommunications services.

Ford Motor Co. is the world's largest truck maker and the No. 2 maker of cars and trucks, behind General Motors. It makes vehicles under the Aston Martin, Ford, Jaguar, Lincoln, Mercury and Volvo brands, Two of its biggest successes are the Ford Taurus and the F-Series pickup. Ford also owns a controlling stake in Mazda and has purchased BMW's Land Rover SUV operations. Ford's finance subsidiary, Ford Motor Credit, is the United States' No. 1 auto finance company.

Copyright NVST.com, Inc. Jan 29, 2001
Provided by ProQuest Information and Learning Company. All rights Reserved
 

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