Is Hertz Private Equity Owned?
Hertz
Includes Hertz Rent-A-Car
car rental · Estero, FL
Clayton, Dubilier & Rice / The Carlyle Group / Merrill Lynch Global PE
2005
“Three PE firms bought Hertz for $15 billion, loaded it with $17 billion in debt, and the company falsely accused 23,000 of its own customers of stealing their rental cars.”
What Happened
- •Clayton, Dubilier & Rice, The Carlyle Group, and Merrill Lynch Global PE acquired Hertz from Ford Motor Company for $15 billion in 2005 — one of the largest PE deals of its era
- •Loaded the company with approximately $17 billion in debt over the ownership period — PE exited in 2013, leaving the debt behind for the public company
- •Filed Chapter 11 bankruptcy in May 2020, emerging in July 2021 — but the PE-era debt structure was the foundation of the collapse
- •Separately, Hertz was found to have filed approximately 3,365 false theft reports per year against its own customers — over 23,000 false accusations total, leading to wrongful arrests
The Damage Done
- ▸Over 23,000 customers were falsely accused of stealing rental cars they had properly returned — some spent 30 to 180+ days in jail for crimes they didn't commit
- ▸Hertz settled for $168 million in December 2022 with customers who were wrongfully arrested, detained, or had their lives disrupted by the false reports
- ▸The PE-era debt load meant the company prioritized aggressive financial recovery tactics over customer relationships — treating renters as adversaries rather than customers
- ▸For the millions of Americans who rented from Hertz, the combination of PE-loaded debt, bankruptcy, and the false theft scandal represents a complete failure of corporate responsibility
Sources
Also owned by Clayton, Dubilier & Rice
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Frequently Asked Questions
Is Hertz owned by private equity?
Not anymore. Hertz was formerly owned by Clayton, Dubilier & Rice starting in 2005, but the firm has since exited. The effects of PE ownership often linger.
What happened to Hertz after the acquisition?
Over 23,000 customers were falsely accused of stealing rental cars they had properly returned — some spent 30 to 180+ days in jail for crimes they didn't commit Hertz settled for $168 million in December 2022 with customers who were wrongfully arrested, detained, or had their lives disrupted by the false reports
Who owns Hertz?
Hertz is owned by Clayton, Dubilier & Rice, which acquired it in 2005.