Hertz Equipment Rental Corporation (HERC), the equipment rental business of Hertz Global Holdings, is to become a stand-alone, publicly-traded company later this year.
HERC is a full-line equipment-rental supplier in commercial and residential construction, industrial and manufacturing, energy, automotive and agricultural sectors.
Hertz Global Holdings filed a statement with US regulatory body the Securities and Exchange Commission detailing the planned separation of its equipment rental business in December 2015 and has since filed a supplemental amendment in February 2016. No record date has been set, though the company has said it expects the transaction to be completed by mid-2016. The separation is expected to be tax-free for U.S. federal income tax purposes to shareholders.
As part of preparations for the planned separation of that business, Herbert Henkel – retired chairman and chief executive officer for Ingersoll Ran – has been selected to serve as non-executive chairman of the business. Previously, Henkel held director positions at AT&T Corp., Visteon Corporation, and Pitney Bowes.
"I am excited for the opportunity to participate in the creation of a new public company and work with the new management team at HERC," Henkel said. "I look forward to contributing to its success as a public company and building value for shareholders."
The company also operates in the UK and China and through joint venture arrangements in Saudi Arabia and Qatar and through franchisees in nine countries in Europe, the Middle East, in Latin America and Asia.
HERC’s 2015 total revenues were $1.5bn and has 4,000 employees.