Exhibit 99.1
Ford
NEWS
Contact: Media: Equity Investment Fixed Income Investment Shareholder Inquiries
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Becky Sanch Community: Community: 800.555.5259 or
313.594.4410 --------- --------- 313.845.8540
bsanch@ford.com Raj Modi Rob Moeller stockinf@ford.com
313.323.8221 313.621.0881
fordir@ford.com fixedinc@ford.com
FOR IMMEDIATE RELEASE
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FORD TO SELL THE HERTZ CORPORATION TO PRIVATE
EQUITY GROUP IN $15 BILLION TRANSACTION
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o Clayton Dubilier & Rice, The Carlyle Group and Merrill Lynch Global
Private Equity to acquire market leader in the rental car and equipment
rental industries.
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DEARBORN, Mich., Sept. 12, 2005 - Ford Motor Company (NYSE: F) announced today
the execution of a definitive agreement with an investor group of leading
private equity firms, under which Ford will sell all of the shares of common
stock of its wholly owned subsidiary, The Hertz Corporation, in a transaction
valued at approximately $15 billion including debt. The acquiring investor group
is composed of Clayton Dubilier & Rice, The Carlyle Group and Merrill Lynch
Global Private Equity.
Under the terms of the agreement, Ford will receive $5.6 billion for the equity
of Hertz.
"This transaction reinforces our commitment to strengthening our balance sheet
and investing in our core automotive business," said Executive Vice President
and Chief Financial Officer Don Leclair. "Hertz is a world class company with an
experienced management team. We look forward to working with the new owners and
intend to maintain our strong commercial relationship with Hertz."
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In connection with the transaction, Hertz plans to commence a cash tender offer
for up to $2.3 billion of certain of its outstanding debt securities; certain
other Hertz debt will be refinanced.
The purchase of Hertz is subject to customary conditions, including applicable
regulatory approvals, and is anticipated to be completed by year end.
J.P. Morgan Securities Inc., Citigroup Global Markets Inc. and Goldman, Sachs &
Co. acted as financial advisors to Ford, and Simpson Thacher & Bartlett LLP
acted as the company's legal advisor.
Ford Motor Company, a global automotive industry leader based in Dearborn,
Michigan, manufactures and distributes automobiles in 200 markets across six
continents. With more than 324,000 employees worldwide, the company's core and
affiliated automotive brands include Aston Martin, Ford, Jaguar, Land Rover,
Lincoln, Mazda, Mercury and Volvo. Its automotive-related services include Ford
Motor Credit Company.
Hertz operates the largest general use car rental business in the world and one
of the largest industrial, construction and material handling equipment rental
businesses in North America, based on revenues.
THIS PRESS RELEASE IS NOT AN OFFER TO SELL SECURITIES AND IT IS NOT SOLICITING
AN OFFER TO BUY OR EXCHANGE SECURITIES IN THE UNITED STATES, NOR IS THIS PRESS
RELEASE AN OFFER TO SELL SECURITIES OR SOLICITING AN OFFER TO BUY OR EXCHANGE
SECURITIES IN ANY STATE OR JURISDICTION IN WHICH SUCH AN OFFER, SOLICITATION OR
SALE WOULD BE UNLAWFUL PRIOR TO REGISTRATION OR QUALIFICATION UNDER THE
SECURITIES LAW OF ANY SUCH STATE OR JURISDICTION.
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