Ford, the nation's second biggest automaker, said it will sell all of Hertz shares to the group composed of Clayton Dubilier & Rice (search), The Carlyle Group and Merrill Lynch Global Private Equity.
Including debt, the transaction is valued at $15 billion, Ford said.
Ford announced in April that it was considering shedding Hertz, which it has owned since 1994, in an effort to focus on its core automotive business. The infusion of cash should help the automaker, which has been struggling with falling sport utility vehicle sales, growing U.S. health care costs and other issues. Ford's second-quarter profits fell 19 percent to $946 million.
Ford said it expects to complete the purchase by the end of the year.
The Associated Press contributed to this report.