Hertz has agreed to take a 20% stake in China Auto Rental as it looks to expand its presence in China.
The deal will enable CAR to operate under licence on behalf of Hertz in China for an initial five-year term.
The financial details of the deal were not disclosed.
CAR is the largest car rental firm in China, operating in 66 cities, serving more than one million customers and approximately 10,000 corporate clients. Last year’s revenues doubled $250 million.
Hertz CEO Mark Frissora said that given CAR’s dominance in the Chinese market, it provided a great platform for Hertz to boost its presence in the world’s second-largest economy.
“As the leading global car rental brand, it’s a perfect fit for Hertz to partner with the largest and most recognised car rental company in China,” he said.
“Hertz is now uniquely positioned among American and European car rental brands to support the rapidly expanding Chinese rental market, as well as CAR’s growth.”
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