What Company Owns Hertz and Its Dominance

Hertz is a well-known car rental company that has been around for over 100 years.

The company was founded in 1918 by John Hertz.

Hertz has grown significantly over the years, expanding its operations globally.

One of the key factors that contributed to Hertz's dominance in the car rental industry is its acquisition by the Hertz Global Holdings, Inc. in 2005.

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Hertz has changed hands several times over the years. The company was initially owned by John Hertz, who repurchased the brand from General Motors in 1953.

In 1985, Hertz was sold to UAL Corporation for a cash deal of $587.5 million. This acquisition expanded Hertz's vehicle renting and leasing operations.

The Ford Motor Company owned Hertz from 1987 to 2005. During this time, the company was operated under Park Ridge Corporation.

In 2006, a consortium of private equity firms, including Clayton, Dubilier & Rice, The Carlyle Group, and Merrill Lynch Global Private Equity, purchased Hertz.

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Hertz Global Holdings, Inc. is owned by various investment firms, with significant stakes held by firms like Knighthead Capital Management and Certares Management. This ownership breakdown is crucial for anyone considering the stock.

The institutional investors hold approximately 85% of the company's shares, with notable players including Knighthead Capital Management, Certares Management, Vanguard Group, and BlackRock. These firms played a key role in Hertz's financial recovery.

A smaller portion of the company is held by public float and retail investors, accounting for around 14% of the shares. This includes shares held by the general public and smaller individual investors.

The remaining 1% of the company is held by insiders, including company executives and members of the Board of Directors.

Here's a breakdown of the ownership structure:

The car rental industry is dominated by just three major companies, which own a whopping 95% of the domestic market.

Enterprise is a giant in the industry, owning both National and Alamo. Avis owns Budget, Payless, and Zipcar, while Hertz owns Dollar and Thrifty.

These three companies have managed to consolidate their power, leaving a handful of smaller, privately held companies to fight for scraps.

Despite their dominance, the smaller companies can still offer significant savings to consumers. They may not have the same level of service or convenience as the bigger players, but they can provide a more affordable option.

In fact, consumers get just as much satisfaction from small rental-car companies as they do from the big ones, according to the J.D. Power 2014 North American Rental Car Satisfaction Study.

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Hertz Global Holdings, Inc. owns Hertz Rent A Car, which is a subsidiary of the company.

Knighthead Capital Management owns the most shares at 44%, making it a significant stakeholder in Hertz.

Carl Icahn holds around 39% of Hertz's shares and controls three board seats, giving him considerable influence over the company's direction.

John Hertz repurchased the brand from General Motors in 1953 through his other company, The Omnibus Corporation, which he renamed The Hertz Corporation.

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Hertz's stock began trading on the New York Stock Exchange in 1954, marking a significant milestone in the company's history.

The Ford Motor Company owned Hertz from 1987 to 2005, a period of 18 years during which the company underwent significant changes.

Private equity firms Clayton, Dubilier Rice, The Carlyle Group, and Merrill Lynch Global Private Equity purchased Hertz in 2005, taking the company public again in 2006.

Hertz received international success after going public in 2006, but the COVID-19 pandemic had a significant impact on the company's business, leading to bankruptcy.