Hertz Global Investor Relations Material
A global car rental service
Hertz is one of the leading global brands to offer car rental services and was the first international company to start operating in China. They have more than 10 000 rental locations and a fleet of over 600 000 vehicles. Hertz offers short-term rentals for occasions such as vacations and business trips and long-term rental options. They also operate a car-sharing service, Connect by Hertz, enabling their customers to rent their cars to others. Some of its competitors include Avis Budget Group, Sixt, and Europcar Mobility Grou.
Background and history
Hertz was founded in 1918 in Chicago by Walter L. Jacobs and was then known as Rent-a-Car. The operation began with just a handful of Ford Model T cars but expanded rapidly. When John D. Hertz later acquired the company in 1923, the brand we know today was formed. After only operating and owning the company for three years, it was subsequently sold to General Motors in 1926.
In 1953, 27 years after he sold it, the previous owner John D. Hertz re-acquired the company, and in the following year, it was listed on the New York Stock Exchange. In 1987 the company was again sold to Ford for a purchase price of $1.3 billion, and in 2005 Hertz's contribution to Ford’s profits was roughly 10 percent. In the same year, Hertz was sold to a group of private equity companies for $15 billion, including The Carlyle Group and others.