Top Stories of 2016: Hertz Files Form with SEC to Separate Equipment Rental Business
Hertz Global Holdings filed its initial SEC Form 10 registration statement detailing the planned separation of its equipment rental business as a stand-alone, publicly traded company. Hertz expects the transaction to be completed by the end of the second quarter of 2016. Hertz said it expects the separation to be a “tax-free event” for federal income tax purposes to shareholders.
“We’ve taken a number of actions this year to drive performance and preparing the equipment rental business to operate as a stand-alone company is among the most significant,” said Hertz president and CEO John Tague. “There are fundamental differences in the business models for vehicle versus equipment rental, and we believe the separation will enable more distinct focus on each by the respective separate management teams, as well as provide the equipment rental business with direct access to capital markets.
“Over the course of this year, we’ve put in place a highly capable senior management team that is ready to run a publicly traded company, based on decades of experience. The team has made significant progress, including a year-over-year 14-percent revenue increase in non-oil and gas markets in the third quarter, and we believe they are positioned to succeed in the long term.”
Larry Silber, president and CEO of Hertz Equipment Rental Corp., called the filing of the Form 10 “a significant milestone on our path toward the separation of the equipment rental business as a stand-alone company. We are confident that our separation from Hertz Global Holdings will provide us better flexibility and focus to pursue growth opportunities within our core equipment rental markets, which also will enable us to provide better value to our customers, employees and suppliers.”
Hertz’ new leadership includes:
- Silber, a veteran of 30 years with Ingersoll Rand where he led the manufacturer’s rental business as well as a variety of business groups;
- Barbara Brasier, chief financial officer, former senior vice president, tax and treasury for Mondelez International;
- Maryann Waryjas, general counsel, former senior vice president, chief legal officer and corporate secretary for Great Lakes Dredge & Dock, and more than 30 years in corporate governance, securities, mergers and acquisitions and partnership in national law firms;
- Bruce Dressel, chief operating officer, veteran of more than 30 years in leadership and senior management roles in the equipment rental industry, including time as president and CEO of Sunbelt Rentals;
- Rich Marani, chief technology officer, with more than 30 years of IT experience.
Based in Estero, Fla., Hertz Equipment Rental Corp. is No. 3 on the RER 100.
