Hertz Enters Low Cost Market in Australasia by Acquiring Ace Rental Cars
The Hertz Corporation (NYSE: HTZ) has entered the low cost car rental market in Australia and New Zealand by acquiring Ace Rental Cars, the second largest discount car rental company in New Zealand. Ace will continue to operate under its existing brand as an independent subsidiary.
"At the price-conscious end of the value brand market, Ace will make an excellent addition to the Hertz family of brands, and will allow us to capture a significant share of New Zealand's growing leisure sector," said Mark Frissora, Hertz Chairman and CEO.
"We also look forward to rapid expansion of Ace in Australia, using Ace's value brand expertise and Hertz capital and local resources," he added.
Established 25 years ago, Ace has a fleet of good quality vehicles throughout New Zealand, in Auckland, Wellington, Christchurch, Queenstown, Picton, Greymouth and Dunedin, and in Queensland, Australia, at rental locations in Brisbane, the Gold Coast and the Sunshine Coast.
Hertz is a growing provider in the low cost car rental market, with value brand operations in the USA, Europe, Mexico, South America and the Caribbean through its wholly owned discount car rental company, Advantage.
The purchase of Ace Car Rentals is a natural progression of Hertz' value brand strategy in the Australasian market, where tourism is a major contributor to the national economies.
Mr. Frissora confirmed that Ace would continue its operations as a "super economy car rental provider," operating in parallel with Hertz and Advantage. The Chief Executive of Ace, Mike Chatterley -- whose father co-founded the company -- will remain in his current role.
In addition to entering the domestic low cost rental markets in Australia and New Zealand, the acquisition of Ace Rental Cars enables the Hertz group to compete for the business of budget international travelers visiting the Australasian region.
"Ace appeals to a broad range of tourists, especially independent travelers. We recognize the expertise and success of the Ace team in their segment, who will continue to operate independently," said Mr. Frissora.
"The many strong attractions of Ace include its highly-reputable management team, first class attention to customers, advanced web-based sales platform and an efficient cost structure based on strong operating and information systems," he continued.
About Hertz
Hertz is the largest worldwide airport general use car rental brand operating from more than 8,500 locations in 146 countries worldwide. Hertz is the number one airport car rental brand in the U.S. and at 81 major airports in Europe, operating both corporate and licensee locations in cities and airports in North America, Europe, Latin America, Asia, Australia and New Zealand. The Company also operates the Advantage car rental brand at 26 airports in the U.S. and the global car sharing club, Connect by Hertz, in New York City, Berlin, London, Madrid Melbourne, and Paris. And, Hertz operates one of the world's largest equipment rental businesses, Hertz Equipment Rental Corporation, offering a diverse line of rental equipment, including tools and supplies, and new and used equipment for sale from approximately 325 branches in the United States, Canada, China, France, Spain and Italy.
