M&A Deal Summary

The Carlyle Group, CD&R and Ridgemont Equity Partners Acquire Hertz

On September 11, 2005, private equity firms The Carlyle Group, CD&R and Ridgemont Equity Partners acquired consumer services company Hertz from Ford Motor for 15.0B USD

Acquisition Highlights
  • This is The Carlyle Group’s 3rd, CD&R’s 1st and Ridgemont Equity Partners’ 3rd transaction in the Consumer Services sector.
  • This is The Carlyle Group’s 4th, CD&R’s 2nd and Ridgemont Equity Partners’ 2nd largest (disclosed) transaction.
  • This is The Carlyle Group’s 114th, CD&R’s 9th and Ridgemont Equity Partners’ 48th transaction in the United States.
  • This is The Carlyle Group’s 3rd, CD&R’s 1st and Ridgemont Equity Partners’ 5th transaction in Florida.
Investment Fate
  • Hertz went public in 2006.

M&A Deal Summary
Date 2005-09-11
Target Hertz
Sector Consumer Services
Buyer(s) The Carlyle Group
CD&R
Ridgemont Equity Partners
Sellers(s) Ford Motor
Deal Type Divestiture
Deal Value 15.0B USD
Advisor(s) White & Case (Legal)

Target

Hertz

Estero, Florida, United States
Entrance to Hertz's corporate headquarters in Estero, Florida.
Entrance to Hertz's corporate headquarters in Estero, Florida.
Hertz operates car rental businesses through the Hertz, Dollar, Thrifty and Firefly brands. Hertz Global operates through corporate and franchisee locations and services the North American, European, Latin and South American, Asian, Australian, African, and Middle Eastern markets. In addition to its car rental business, Hertz provides fleet leasing and management services through its Donlen subsidiary. Hertz was originally established in 1918 and is based in Estero, Florida.

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Buyer(S) 3

Buyer

The Carlyle Group

Washington, District of Columbia, United States

Investor Investor Investor Investor Investor

Category Private Equity Firm
Founded 1987
PE ASSETS 435.0B USD
Size Mega
Type Sector Agnostic
DESCRIPTION
Carlyle's corporate headquarters on Pennsylvania Ave. in Washington, DC.
Carlyle's corporate headquarters on Pennsylvania Ave. in Washington, DC.

The Carlyle Group is a global investment firm that pursues private equity, credit, and real estate investments worldwide. Carlyle's private equity practice practice pursues buyouts, strategic minority equity investments, equity private placements, consolidations and buildups, and growth capital financings. With offices in 19 countries, Carlyle can easily target opportunities throughout North America, Europe, Asia, Australia, the Middle East/North Africa and Latin America. Broad sectors of interest include aerospace, defense, automotive and transportation, consumer, retail, energy and power, financial services, healthcare, industrial, infrastructure, technology services, business services, telecommunications and media. The Carlyle Group was formed in 1987 and is based in Washington DC.

DEAL STATS #
Overall 197 of 744
Sector (Consumer Services) 3 of 10
Type (Divestiture) 20 of 72
State (Florida) 3 of 14
Country (United States) 114 of 349
Year (2005) 20 of 32
Size (of disclosed) 4 of 137
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2005-09-08 Gakusei Engokai

Tokyo, Japan

Gakusei Engokai is a premier publisher of job placement magazines, which are distributed to more than 100,000 locations throughout Japan. These magazines are well known in Japan for its brands: "an", "DODA", "salida", and "arbeit times". The company also provides this information via the Internet and mobile phones, which is a rapidly growing interface for job seekers.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2005-09-15 Núter Feed S.A.U.

A Coruña, Spain

Formed in 1965, Núter Feed S.A.U. is a producer and distributor of animal feed for cattle and animals based in A Coruña, Spain.

Sell -
Buyer

CD&R

New York, New York, United States

Investor Investor Investor Investor Investor

Category Private Equity Firm
Founded 1978
PE ASSETS 30.0B USD
Size Mega
Type Sector Agnostic
DESCRIPTION

Clayton, Dubilier & Rice LLC (CD&R) is a large private equity firm that targets non-core divestitures of large corporations, growth equity financings, traditional buyouts, and corporate/family partnerships. CD&R looks for opportunities in North America, Western Europe, and Asia and will consider businesses in a wide range of sectors including consumer/retail, healthcare, industrials, and services. Prospective companies generally lead their respective markets, have stable cash flows, and possess competitive advantages through differentiated products, services, or processes. CD&R was formed in 1978 and has offices in New York City and London.

DEAL STATS #
Overall 12 of 92
Sector (Consumer Services) 1 of 6
Type (Divestiture) 8 of 25
State (Florida) 1 of 5
Country (United States) 9 of 67
Year (2005) 2 of 2
Size (of disclosed) 2 of 34
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2005-03-18 Rexel

Paris, France

Rexel is a distributor of electrical parts and supplies. The Company supplies customers involved in residential, commercial and industrial construction, maintenance and renovation and currently has a network of approximately 1,700 branches in 29 countries, providing over 1.2 million products and related services. Rexel was founded in 1967 and is based in Paris, France.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2006-11-01 Sally Beauty Holdings

Denton, Texas, United States

Sally Beauty Holdings is a specialty retailer and distributor of professional beauty. Sally Beauty Holdings operates in two segments, Sally Beauty Supply and Beauty Systems Group. Sally Beauty Holdings was founded in 1964 and is based in Denton, Texas.

Buy -
Buyer

Ridgemont Equity Partners

Charlotte, North Carolina, United States

Investor Investor Investor Investor Investor

Category Private Equity Firm
Founded 1993
PE ASSETS 7.0B USD
Size Mega
Type Sector Agnostic
DESCRIPTION

Ridgemont Equity Partners is an independent private equity firm specializing in middle-market buy-outs, corporate divestitures, recapitalizations and growth capital investments. The Firm targets to invest in companies located in North America, preferably in US and Canada. REP looks to invest up to $500 million in companies with EBIDTA of $5 - $50 million. The Firm seeks to hold both majority and minority equity interest in portfolio companies. Specific areas of interest include basin industries and services, energy, healthcare, telecommunications, media and technology. Ridgemont Equity Partners is a spun-off of Banc of America Capital Investors (BACI). Ridgemont Equity Partners was formed in August 2010 and is based in Charlotte, North Carolina.

DEAL STATS #
Overall 52 of 133
Sector (Consumer Services) 3 of 4
Type (Divestiture) 3 of 5
State (Florida) 5 of 7
Country (United States) 48 of 118
Year (2005) 5 of 7
Size (of disclosed) 2 of 20
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2005-09-08 IGN Entertainment

San Francisco, California, United States

IGN Entertainment is an Internet media and services company focused on the video game and entertainment enthusiast markets, attracting more than 28 million unique monthly users. The company's network of videogame-related properties (IGN.com, GameSpy, FilePlanet, TeamXbox, Direct2Drive and others), is the web's number one video game information destination and attracts one of the largest concentrated audiences of young males on the Internet.

Sell $650M
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2005-10-01 Clean Earth

Hatboro, Pennsylvania, United States

Clean Earth, Inc. is a provider of environmental services for a variety of contaminated materials including soils, dredged materials, and hazardous waste and drill cuttings. The company analyzes, treats, documents, and recycles waste streams generated in multiple end-markets such as power, construction, oil & gas, infrastructure, industrial, and dredging. Treatment includes thermal desorption, dredged material stabilization, bioremediation, physical treatment/screening, and chemical fixation. Clean Earth was established in 1990 and is based in Hatboro, Pennsylvania.

Sell -

Seller(S) 1

SELLER

Ford Motor

Dearborn, Michigan, United States
Category Company
Founded 1903
Sector Automotive
Employees173,000
Revenue 176.2B USD (2023)
DESCRIPTION
Ford Motor Company's corporate headquarters in Dearborn, Michigan.
Ford Motor Company's corporate headquarters in Dearborn, Michigan.

Ford Motor produces and sells automobiles under the Ford and Lincoln brands. In addition to the products Ford sells to dealerships for retail sale, the Company also sells vehicles to dealerships for sale to fleet customers, including commercial fleet customers, daily rental car companies, and governments. Ford Motor also sells parts and accessories, primarily to dealerships and to authorized parts distributors. Through its dealerships, Ford Motor also offers extended service contracts to retail customers. Ford Motor was founded in 1903 and is headquartered in Dearborn, Michigan.

DEAL STATS #
Overall 5 of 12
Sector (Consumer Services) 1 of 1
Type (Divestiture) 3 of 9
State (Florida) 1 of 1
Country (United States) 4 of 8
Year (2005) 1 of 1
Size (of disclosed) 1 of 4
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2002-08-12 Kwik-Fit

Herts, United Kingdom

Kwik-Fit, established in 1971, is an independent tire retailer with Europe’s largest service point network comprising 1,218 directly-managed tire fitting centres in the UK, France and Holland.

Sell £320M
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2007-01-07 Troller Veículos Especiais S/A

Horizonte, Brazil

Troller Veículos Especiais S/A is a designer and producer of off-road vehicles. The Company was formed in 1995 and is headquartered in Horzonte, Brazil.

Buy -
Mergr

Product

Company

Legal