Financial services company Athene Holding has closed a transaction making it the lead investor in a combination of Wheels Inc., and Donlen. The announcement was made on Oct. 28, 2021.
On March 30, Hertz completed the sale of Donlen to Athene Holding. Hertz received $891 million in cash proceeds per the terms of the transaction, subject to certain adjustments post-closing based on the level of assumed indebtedness, working capital and fleet equity.
Wheels Chief Financial Officer Shlomo Crandus will lead the new company as CEO, and both the management team and Board of Directors will contain representatives from Donlen and Wheels. Donlen CEO Tom Callahan will become a senior executive and board member of the combined company.
The Frank family of Wheels will maintain a significant investment and board representation, with Dan Frank announced as vice chairman focused on continuity of industry-leading performance and culture, and new product innovation.
The new company has approximately $5 billion in assets, a broader product suite, a highly diversified, highly rated customer base, and is expected to be rated investment grade.
The Athene-led investment is focused on long-term stability and best in class customer service, according to a release. There will be a significant focus on a measured approach to integration including the retention of both company's outstanding and experienced personnel and continuity of client facing contacts to ensure a seamless and enhanced experience for their clients. The depth and breadth of Athene's funding and financing capabilities will allow the company to offer clients an enhanced suite of solutions addressing a myriad of fleet and other needs.