Hertz has agreed to purchase Tulsa-based Dollar Thrifty Automotive Group for about $2.3 billion.Tulsa, Oklahoma -
Employee's at Dollar Thrifty's Tulsa headquarters are guaranteed jobs for at least four months after merging with Hertz, according to information filed with the Securities and Exchange Commission.
The memo filed Monday with the Commission was issued to Dollar Thrifty managers and featured key points of the merger agreement announced on Sunday. Hertz has agreed to purchase Dollar Thrifty for about $2.3 billion.
The memo states that all Tulsa employees will be retained for four months and the agreement provides severance payments for anyone who is terminated at the end of the four month period.
Dollar Thrifty employees 5,900 employees, including almost 800 at its Tulsa headquarters.
Mike Neal, president and CEO of the Tulsa Metro Chamber, said the Chamber has been monitoring the situation and looks forward to working with Hertz.
"The Chamber welcomes Hertz as a new corporate partner in Tulsa and will aggressively work to ensure the company's integration plans result in positive protections for the Tulsa area workforce," Neal said. "The employees of the rental car industry are a tremendous asset in the travel industry sector, which is closely aligned with the vital aviation and aerospace industry in the Tulsa region."
The announcement Sunday ended two years of competition to buy the company.
Avis Budget Group was also in the mix, pursuing a bid for Dollar Thrifty for more than a year. Avis dropped its bid nearly a year ago citing market conditions. Then, in October of last year, Hertz dropped its bid, too. But Dollar Thrifty didn't trust that the years of attempts were over. In February, it extended its shareholder rights plan known as a "poison pill" - a maneuver designed to deter any unsolicited attempts to take over the company - through May 2013.
Hertz Chairman and CEO Mark P. Frissora said in a statement that the Dollar Thrifty buyout will give it access to two well-known rental car brands - Dollar and Thrifty - as well as make it a more competitive player in Europe and other markets overseas.
"We are pleased to have finally reached an agreement with Dollar Thrifty after a lengthy - but worthwhile - pursuit," he said.
Both Hertz and Dollar Thrifty's boards have unanimously approved the deal, which still needs antitrust clearance from the Federal Trade Commission. Hertz said it has stayed in close contact with the FTC to secure clearance and that Dollar Thrifty will fully cooperate with the process.
The Associated Press Contributed to this report.
