Hertz Global Holdings Inc. filed its initial SEC Form 10 registration statement, which details the separation of its equipment rental business as a stand-alone, publicly traded company.
No record date has been set, though Hertz has said it expects the transaction to be completed by the end of the second quarter of 2016. The separation is expected to be a tax-free event for U.S. federal income tax purposes to shareholders, according to the company.
"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 John Tague, Hertz’s president and CEO. "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.
Larry Silber will be serving as the president and CEO of Hertz Equipment Rental Corp. (HERC). His background includes 30 years with Ingersoll Rand, where he led business groups including utility equipment, rental and remarking and equipment and services businesses.
"The filing of the Form 10 is a significant milestone on our path toward the separation of the equipment rental business as a stand-alone company," said Silber. "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."