HERC sell-off a possibility says Hertz CEO
By Murray Pollok11 May 2011
Hertz Corp may consider selling off its equipment rental business, Hertz Equipment Rental Corp (HERC), and focus entirely on car rentals.
Speaking at the Wells Fargo Securities Industrial and Construction Conference on 10 May, Mark Frissora, Hertz president and chief executive officer, told analysts that Hertz could think about selling HERC in 12 to 24 months time when the business cycle had improved and HERC was demonstrating its full value.
"That might be a time for us to consider spinning the company, merging it, doing something, and making rental car a pure play company", said Mr Frissora.
"We would only do that if we could get generate positive shareholder value and get a fair valuation for the business. Yes, it's a possibility and something we would look at in the future."
HERC is one of the largest equipment rental companies in North America and has recently started to increase its international presence. It already has a sizeable rental operation in Spain and France and is now also operating in China and Saudi Arabia.
Last year HERC represented 14.2% of Hertz's US$7.6 billion revenues.