PARK RIDGE, N.J. — Ford Motor has completed the sale of its Hertz rental car and equipment rental units to a group of investors, the company said. Ford will receive $5.6 billion in cash for the deal, which was announced in September. The investor group, made up of private equity firms Clayton, Dubilier & Rice; the Carlyle Group; and Merrill Lynch Global Private Equity, is also assuming $10 billion in debt.
Fitch Ratings downgraded Hertz' issuer default rating and debt rating to “junk” status, citing its limited financial flexibility since secured borrowing accounts for 75 percent of Hertz' debt, although the car-rental and equipment-rental divisions have been highly profitable. Ford has owned Hertz since 1994.
Based in Park Ridge, N.J., Hertz Equipment Rental Corp. is No. 3 on the RER 100.