Hertz Global Holdings Inc. beat out Enterprise Rent-A-Car in a bidding war for the right to purchase the assets of Advantage Rent A Car out of bankruptcy. Advantage was formerly owned by embattled car dealer Denny Hecker.
Hertz said it agreed to pay $33 million for Advantage in a deal subject to court approval. A hearing is scheduled for today. If approved, the purchase is expected to be completed Wednesday.
The agreement would give Hertz certain rights, trademarks and copyrights to use the Advantage brand name, Web site and phone numbers. It also would give Hertz the rights to leases, fixed assets, airport concession agreements and other agreements. With about 20 locations, Advantage generated revenues of about $146 million in 2008, Hertz said.
Hecker, embroiled in court disputes with Chrysler Financial, was forced to put Advantage into bankruptcy in December. In early March, Enterprise said it had reached an agreement with Hecker to purchase assets of Advantage out of U.S. Bankruptcy Court for $19 million.
In a statement, Enterprise said: The auction process escalated the purchase price for the assets of Advantage to in excess of $30 million, higher than management of Enterprise deemed appropriate for the failed business.