Hertz boosts TV/film rentals with Cinelease acquisition

Hertz has acquired Cinelease, a film and TV rental specialist, for an undisclosed price from private equity company Audax. Hertz said the deal would add around US$50 million in revenues to its equipment rental operations in 2012.

Cinelease, which was established in Los Angeles in 1977, will be integrated within the Hertz Entertainment Services business, making it "the leading provider of lighting and grip services to the US television industry".

Mark Frissora, Hertz chairman and chief executive officer, said TV was one of the fastest growing industries in the US; "Cinelease aligns with Hertz's growth and diversification strategy to meet the equipment rental needs of a broad range of leading industries.

"The acquisition expands our footprint in another specialty rental market with higher revenue growth and margins, longer rentals and lower seasonal cyclicality. Cinelease will add at least 3% of incremental, inorganic revenue growth to our global equipment rental revenues in 2012".

Hertz said Cinelease complemented its earlier acquisitions of First Call and 24/7 and would allow it to "uniquely bundle a wide variety of products for film and television production companies, from lights, grip, generators, cranes and lifts to the widest selection of rental cars in the industry."

The company estimates the value of the US lighting and grip rental business at $600 million annually.

Cinelease operates from seven locations in Atlanta, Austin, Charlotte, Chicago, Dallas, New Orleans, and Santa Fe. It was acquired by Audax in March 2007, following which it expanded its footprint with the addition of seven facilities in six states.