On Tuesday, Penske Automotive Group (NYSE:PAG) announced that it has signed a franchise agreement giving it control over multiple Hertz (NYSE:HTZ) car-rental locations in the state of Indiana.

Specifically, Penske says it has purchased Hertz assets at "more than 20 Hertz airport and off-airport locations, including the three principal airports of Indianapolis, Fort Wayne, and South Bend."

Announcing the deal, Penske Car Rental President Bud Denker pointed to Penske's existing Hertz franchise in Memphis as proof that this tie-up is a good idea, and he called the expansion into Indiana "a logical progression in our relationship." For its part, Hertz called the agreement with Penske "part of Hertz's strategy to transition select corporate markets to franchisee operations."

Financial terms of the deal were not disclosed. Nevertheless, investors applauded it, bidding up Penske shares 1.9% to close at $30.67, and bidding Hertz up 3% to $20.26.