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Ford To Sell The Hertz Corporation To Private Equity Group In $15 Billion Transaction

Clayton Dubilier & Rice, The Carlyle Group and Merrill Lynch Global Private Equity to acquire market leader in the rental car and equipment rental industries.

DEARBORN, Mich. - Ford Motor Company announced the execution of a definitive agreement with an investor group of leading private equity firms, under which Ford will sell all of the shares of common stock of its wholly owned subsidiary, The Hertz Corporation, in a transaction valued at approximately $15 billion including debt. The acquiring investor group is 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 strengthening our balance sheet and investing in our core automotive business," said Executive Vice President and Chief Financial Officer Don Leclair. "Hertz is a world class company with an experienced management team. We look forward to working with the new owners and intend to maintain our strong commercial relationship with Hertz."

In connection with the transaction, Hertz plans to commence a cash tender offer for up to

$2.3 billion of certain of its outstanding debt securities; certain other Hertz debt will be refinanced.