Antitrust Law Daily Wrap Up, ANTITRUST NEWS: FTC seeks public comment on Franchise Services of North America’s Application for approval to sell Advantage Rent a Car, (Jan 7, 2014)
Organizations Mentioned:Bureau of Competition | Dollar Thrifty Automotive Group, Inc. | Hertz Global Holdings, Inc. | NORTH AMERICA
The FTC announced that it is seeking public comments on an application by Franchise Services of North America, Inc. (FSNA) for approval to sell the assets it acquired from Hertz Global Holdings, Inc., pursuant to an FTC settlement with Hertz in 2012, to The Catalyst Capital Group, Inc. (Catalyst). The settlement required Hertz to sell its Advantage rental car business and other assets to a buyer approved by the Commission in order to resolve charges that its proposed $2.3 billion acquisition of Dollar Thrifty Automotive Group, Inc. would have been anticompetitive.
Pursuant to the consent order with Hertz, FSNA acquired Advantage and, through its direct subsidiary Simply Wheelz, has operated the business under the Advantage name. In November 2013, Simply Wheelz filed for Chapter 11 bankruptcy protection, and sought to sell Advantage, which has continued to operate during the approval process.
Catalyst was the winning bidder for the Advantage assets in a bankruptcy auction held in December 2013, The bankruptcy court has approved Catalyst’s acquisition of Advantage, subject to FTC approval. In its application for Commission approval, FSNA states that Catalyst is one of the largest Canadian private equity firms and has a “proven track record of acquiring distressed businesses and successfully turning them around.” The application also cites Catalyst’s “substantial financial commitments” to the Advantage business.
Public comments may be submitted through January 22, 2014. Written comments should be sent to: Federal Trade Commission Office of the Secretary, 600 Pennsylvania Ave., N.W., Washington, DC 20580. Comments can be submitted electronically. Copies of the application can be found on the FTC’s website and as a link to this press release. (FTC File No. 121-0120, Docket No. C-4376; the staff contact is Daniel P. Ducore, Bureau of Competition, 202-326-2526)
News: Antitrust FederalTradeCommissionNews