Hertz Global Holdings might consider spinning off Hertz Equipment Rental Corp. in the future, chairman and CEO Mark Frissora said at the Wells Fargo Securities Industrial and Construction conference this week. However, Frissora cautioned that the company would only sell HERC if a potential transaction generated positive shareholder value and the company could get a fair valuation for the business.
While HERC revenues dropped in 2010, its worldwide equipment rental revenues increased 13 percent in the first quarter on a year-over-year basis.
Frissora’s comments came a day after Hertz increased its bid to acquire Dollar Thrifty by about 30 percent to $2.1 billion. Hertz has been bidding against Avis Budget Group to acquire Dollar Thrifty.
Hertz Corp. has looked at the possibility of selling HERC periodically during its decades-long ownership of the equipment rental unit.
Based in Park Ridge, N.J., HERC is No. 4 on the RER 100.