Hertz to seek court approval for Donlen sale to Apollo affiliate next week

Hertz Global Holdings Inc. said it did not receive any qualified competing bids for the purchase of the assets of its wholly owned subsidiary, Donlen Corp., and that the company would proceed with its planned sale to the stalking-horse bidder, Athene Holding.

A hearing to approve the sale is scheduled for March 1. While there were several objections filed and informal comments received by the company in connection with the sale, the company said it has resolved almost all concerns and that it expects the hearing to move forward on an uncontested basis.

Under the terms of the deal, the purchase price consists of $850 million in cash subject to certain adjustments for working capital, fleet equity and assumed indebtedness that the company said are uncertain but are expected to increase the final purchase price to $875 million to $900 million. That bid is about 10x annual EBITDA, the company said, which it added was "consistent with the range of recent valuation of publicly traded fleet management companies."

Donlen operates a fleet management solutions business, including vehicle leasing, maintenance management and administrative services. The company said since its acquisition in 2011, it has operated primarily as a stand-alone business and had not been integrated into the company's rental car business.

Athene is a financial services company and an affiliate of Apollo Management.