Billion dollar car hire

The

is to sell its car rental subsidiary Hertz for around $15 billion including debt to an investor group composed of Clayton Dubilier & Rice, The Carlyle Group and Merrill Lynch Global Private Equity.

Under the terms of the agreement, Ford will receive $5.6 billion for the equity of Hertz.

“This transaction reinforces our commitment to investing in our core automotive business,” said Executive Vice President and Chief Financial Officer Don Leclair.

Hertz operates the largest general use car rental business in the world and one of the largest industrial, construction and material handling equipment rental businesses in North America, based on revenues.

The purchase of Hertz is subject to customary conditions, including applicable regulatory approvals, and is anticipated to be completed by year end.