Cendant Corp., the massive conglomerate whose growth came from dozens of acquisitions, has announced that the company is planning a break up, dividing into four separate entities.
Cendant’s real estate, travel distribution, hospitality and vehicle rental businesses will split into independent, publicly traded companies under a plan approved by the Cendant board in late October.
Its vehicle rental side, Cendant Car Rental Corp., which operates Avis and Budget, will maintain its location in Parsippany, N.J. Current Cendant president and CFO Ronald L. Nelson will step in as chairman and CEO of Vehicle Rental Services.
Vehicle Rental Services will have no legacy corporate debt, but will assume existing securitized debt related to rental vehicle assets.
Cendant Car Rental Group reported third-quarter earnings of $1.43 billion, up 15% from the same period last year. Stock exchange listings for the new companies have not yet been determined.
No new names have been selected for the companies, but the Cendant name will be retired.