Hertz enters asset purchase agreement with Athene to sell Donlen unit

By Sarah Lizee

Olympia, Wash., Nov. 30 – Hertz Global Holdings, Inc. entered into a stock and asset purchase agreement to sell substantially all of the assets of its wholly owned subsidiary, Donlen Corp., to Athene Holding Ltd. for an anticipated cash payment of $825 million, subject to adjustments for fleet equity, working capital and assumed debt.

Hertz anticipates that these adjustments will result in a purchase price at closing of at least $875 million, the company said in a press release.

“The agreement to sell our Donlen business is another significant accomplishment for Hertz during our financial restructuring, following the $1.65 billion debtor-in-possession financing and $4 billion fleet financing recently approved by the Bankruptcy Court,” Hertz president and chief executive officer Paul Stone said in the release.

“As we continue to work to position Hertz and our business for the future, we believe this transaction provides significant additional flexibility to help us achieve our strategic and financial objectives.”

The agreement with Athene was reached following an initial marketing process. If approved by the bankruptcy court at a hearing anticipated for Dec. 16, the agreement with Athene will serve as the stalking horse bid in a court-supervised sale process, and the agreement will establish a minimum sale price for Donlen.

Hertz said it expects to conduct a competitive auction process under bidding procedures that will be subject to approval by the bankruptcy court to ensure Hertz receives the highest and best offer for the Donlen business.

White & Case LLP is serving as Hertz's legal adviser, Moelis & Co. is serving as investment banker, and FTI Consulting is serving as Hertz's financial adviser.

Hertz is an Estero, Fla.-based car rental company. It filed Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the District of Delaware on May 22, 2020. The case number is 20-11218.

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