Following a public comment period, the Federal Trade Commission has approved an application by Franchise Services of North America, Inc. (FSNA) to sell assets it acquired from Hertz Global Holdings, Inc. to The Catalyst Capital Group, Inc. The FTC’s 2012 settlement required Hertz to sell its Advantage rental car business and other assets to a Commission-approved buyer (FSNA) in order to resolve charges that its proposed $2.3 billion acquisition of Dollar Thrifty Automotive Group, Inc. would have been anticompetitive. The FTC’s settlement requires FSNA, for three years, to get the FTC’s approval before selling any of the Advantage assets it acquired.
On November 5, 2013, FSNA through its direct subsidiary Simply Wheelz filed for Chapter 11 bankruptcy protection, and sought to sell Advantage, which has continued to operate during this process. Following a bankruptcy auction held in December 2013, Catalyst was declared the winning bidder for the Advantage assets. The bankruptcy court approved Catalyst’s acquisition of Advantage, subject to FTC approval. The Commission now has approved FSNA’s application to sell the Advantage assets to Catalyst following the public comment period.
The Commission vote approving the application and responses to commenters was 3-0-1, with Commissioner Joshua D. Wright not participating. (FTC File No. 121-0120, Docket No. C-4376; the staff contact is Daniel P. Ducore, Bureau of Competition, 202-326-2526)
The FTC’s Bureau of Competition works with the Bureau of Economics to investigate alleged anticompetitive business practices and, when appropriate, recommends that the Commission take law enforcement action. To inform the Bureau about particular business practices, call 202-326-3300, send an e-mail to antitrust{at}ftc{dot}gov, or write to the Office of Policy and Coordination, Bureau of Competition, Federal Trade Commission, 601 New Jersey Ave., Room 7117, Washington, DC 20001. To learn more about the Bureau of Competition, read Competition Counts. Like the FTC on Facebook, follow us on Twitter, and subscribe to press releases for the latest FTC news and resources.