Clayton, Dubilier & Rice, The Carlyle Group and Merrill Lynch Global Private Equity Complete $15 Billion Hertz Acquisition

New York - Clayton, Dubilier & Rice, Inc. (CD&R), The Carlyle Group (Carlyle) and Merrill Lynch Global Private Equity (MLGPE) announced today that they have completed the acquisition of The Hertz Corporation (Hertz) in a transaction valued at $15 billion. Hertz, formerly a subsidiary of Ford Motor Company (NYSE: F), is the world’s largest vehicle rental organization and through its Hertz Equipment Rental Corporation (HERC) is one of the leading equipment rental companies in North America.

George W. Tamke, a CD&R Operating Partner, and Chairman of the Hertz Board of Directors, said on behalf of the investor group, "We are very proud to be associated with one of the most recognized brands in the world. With a track record of innovation, an intense focus on customer service and a deep and experienced management team, Hertz is well positioned to sustain its leadership in a very attractive market."

With the completion of the transaction, Hertz will have a capital structure with $2.3 billion in equity contributed in approximately equal amounts by affiliates of CD&R, Carlyle and MLGPE. It will also have $5.6 billion of corporate debt as well as $4.8 billion of U.S. fleet debt, and $2.1 billion of international fleet debt. Mr. Tamke added: "The capital structure that has been put in place for Hertz will provide significant flexibility for the company, and will allow the business to build on the very strong foundation that has been established."

Financial advisors for the investor group were Deutsche Bank AG, Lehman Brothers, Inc., Merrill Lynch and Co. Inc., The Goldman Sachs Group, Inc., JP Morgan Case Co., BNP Paribas, Royal Bank of Scotland Group PLC and Calyon. Debevoise & Plimpton LLP served as legal advisor.

About Hertz
Hertz is the leader in the $25+ billion annual sales global car rental market with strong positions in the corporate and leisure sectors, where service is most highly valued. Hertz has more than $7 billion in annual revenue and has been consistently profitable in recent years. Founded in 1918, the company today accepts reservations at approximately 7,800 locations in the U.S. and 150 foreign countries. Hertz Equipment Rental Corporation is a leading construction and industrial equipment rental business with a total of over 340 locations in the U.S., Canada, Spain and France.

About Clayton, Dubilier & Rice
Clayton, Dubilier & Rice, Inc. is a leading private equity investment firm that has earned consistent, superior investment returns using an integrated operational and financial approach to building and growing portfolio businesses. Since its founding in 1978, CD&R has managed the investment of over $6.5 billion of equity in 38 US and European businesses - mostly subsidiaries or divisions of large multi-business corporations - representing a broad range of industries with an aggregate transaction value in excess of $40 billion and revenues exceeding $50 billion.

About Merrill Lynch
Merrill Lynch Global Private Equity is the private equity arm of Merrill Lynch & Co., Inc. Merrill Lynch is one of the world's leading wealth management, capital markets and advisory companies, with offices in 36 countries and territories and total client assets of approximately $1.7 trillion. As an investment bank, it is a leading global trader and underwriter of securities and derivatives across a broad range of asset classes and serves as a strategic advisor to corporations, governments, institutions and individuals worldwide. Through Merrill Lynch Investment Managers, the company is one of the world's largest managers of financial assets. Firmwide, assets under management total $524 billion. For more information on Merrill Lynch, please visit www.ml.com.