Hertz Global Holdings, Inc. formally entered into a long-term strategic partnership agreement with Localiza, one of South America's largest rental car companies and market leader in Brazil, following approval by the country's antitrust authority, CADE. Hertz has now completed the sale of its Brazil car rental and leasing operations to Localiza.
Both companies have entered into referral and brand cooperation agreements to govern their ongoing relationship. The alliance will also involve the exchange of know-how in areas of technology, customer service, and operational excellence.
Under the referral and brand cooperation agreements, Localiza customers traveling outside of South America will be referred to Hertz reservation channels. In select markets, including the U.S., Hertz expects to display the Localiza brand at key airport locations that frequently serve visitors from Brazil. Similarly, Hertz customers traveling to Brazil will be referred to Localiza, with "Localiza Hertz" branding in most locations, providing them access to a broader network of locations and a larger vehicle fleet than previously offered by Hertz Brazil.
The purchase price for the Hertz Brazil operation, which includes both car rental and vehicle leasing, closed at R$360 million, subject to post-closing adjustments concluding a financial audit.
"This agreement brings together two leading brands and an enhanced product and service offering for our respective customers as they travel the world," said Kathryn V. Marinello, president and chief executive officer, Hertz.
"Customers from both companies will have innovative services, attendance, and solutions to facilitate their mobility and improve their experience of car rental and vehicle leasing," says Eugenio Mattar, CEO of Localiza.
The Hertz Corporation is a subsidiary of Hertz Global Holdings, Inc., and it operates the Hertz, Dollar and Thrifty vehicle rental brands in approximately 9,700 corporate and franchise locations throughout North America, Europe, The Caribbean, Latin America, Africa, the Middle East, Asia, Australia and New Zealand.
Localiza is one of the largest car rental networks in South America, with 579 branches in seven countries and a fleet of more than 137,607 thousand cars. It is a reference to excellent customer service and recognized by numerous awards in its category.
SOURCE Hertz Global Holdings, Inc.
Edited by G. Davila