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Hertz Global Holdings Inc. has acquired Advantage Rent A Car, after the rental car company's bid won out over another offer for Advantage in a bankruptcy auction managed by Arrowpoint Advisory's Chicago team. Arrowpoint Advisory was appointed by the Official Committee of Unsecured Creditors.
Advantage Rent A Car is the largest independent rental car agent, and one of the leading internet and discount-driven vehicle rental companies, in the United States. The Group filed for Chapter 11 bankruptcy protection in December 2008.
As a result of a rapidly mobilised marketing process targeting domestic and international buyers, the unsecured creditors will recover more than double the amount available under the original stalking horse bid.
Lead counsel to the OCUC, Harley Goldstein, commented: "The Arrowpoint Advisory team provided immediate value to the §363 sales process and drove a competitive environment that resulted in a significantly better outcome for the creditors."
Hertz will initially operate 20 Advantage locations in key U.S. leisure travel markets. Mark P. Frissora, Hertz's Chairman and Chief Executive Officer, said: "We're pleased to have secured the purchase of Advantage Rent A Car, a popular brand for price-oriented customers at key U.S. leisure travel destinations. The 20 Advantage locations, combined with our 6 Simply Wheelz locations and the Hertz brand nationwide, enables us to serve the wide range of service and price-oriented car rental customers in the United States."
James Lever, Managing Director at Arrowpoint Advisory, commented: "This is a terrific result for Advantage's creditors and an excellent example of Arrowpoint Advisory's growing international restructuring practice and our excellent sector knowledge."
Arrowpoint Advisory also led the buy-out of Travel Jigsaw, Europe's leading independent online and off-line car hire broker in June 2008.