Hertz Global Holdings Inc has formally entered into a long-term strategic partnership agreement with Localiza, South America’s largest rental car company and the market leader in Brazil, following approval by the country’s antitrust authority, CADE. As part of the agreement, Hertz has now completed the sale of its Brazil car rental and leasing operations to Localiza.
Both companies have entered into referral and brand co-operation agreements to govern their ongoing relationship. The alliance will also involve the exchange of know-how in areas of technology, customer service and operational excellence.
Under the referral and brand co-operation agreements, Localiza customers traveling outside of South America will be referred to Hertz reservation channels. In select markets, Hertz expects to display the Localiza brand at key airport locations that frequently serve visitors from Brazil. Similarly, Hertz customers traveling to Brazil will be referred to Localiza, with ‘Localiza Hertz’ branding in most locations, providing them access to a broader network of locations and a larger vehicle fleet than previously offered by Hertz Brazil.
The purchase price for the Hertz Brazil operation, which includes both car rental and vehicle leasing, closed at R$360 million, subject to post-closing adjustments concluding a financial audit.
“We are proud to partner with Localiza, with whom we share similar values of innovation and customer excellence,” said Kathryn Marinello, President and Chief Executive, Hertz. “This agreement brings together two leading brands and an enhanced product and service offering for our respective customers as they travel the world.”
“We are very motivated by the start of this long-term strategic partnership that represents a new milestone for the development of the sector,” said Eugenio Mattar, Chief Executive, Localiza. “Customers from both companies will have innovative services, attendance and solutions to facilitate their mobility and improve their experience of car rental and vehicle leasing.”