US automotive rental giant Hertz has scheduled the spin-off of its equipment rental subsidiary Hertz Equipment Rental Corp (HERC) into a stand-alone publicly-traded company, for the end of H1 2016.
Larry Silber, president and CEO of HERC, noted, “We are confident that our separation from Hertz Global Holdings will afford us better flexibility and focus to pursue growth opportunities within our equipment rental markets, and provide better value to our customers, employees, and suppliers.”
HERC is present in the Middle East as an owner-operator in Saudi Arabia and Qatar and local dealerships under franchise agreements in Afghanistan, and most recently, Iraq – after a deal was signed in October with the Khudairi Group, which has locations in four major cities.
Jay Early, HERC international VP, added at the time: “Our success in Saudi Arabia, expansion into Qatar and our franchise in Iraq reflect our confidence in ongoing development in the Middle East.”
For Hertz as a whole, the spinoff means clarifying the distinction between its automotive business and its equipment rental arm, and will pave the way for a divergence of strategy between the two.
John Tague, Hertz president and CEO, said, “We believe the separation will enable more distinct focus for both and provide the equipment rental business with direct access to capital markets.”
“We’ve put in place a highly capable senior management team that is ready to successfully operate and grow the business, as well as run a publicly-traded company, based on decades of experience.”
