Herc Rentals is now officially a separate company from the Hertz Car Rental business and as of today is trading on the New York Stock Exchange under the symbol HRI. Herc Rentals rang the opening bell at the NYSE this morning to commemorate its first day as a publicly traded company.
Herc Rentals has approximately 280 company-operated branches, primarily in North America, more than 4,600 employees and had nearly $1.7 billion in 2015 revenues. The equipment rental business spans more than 50 years.
To effect the separation as part of a tax-free spinoff, Hertz Global Holdings stockholders as of the June 22 record date received shares in Hertz Rental Car Holding Co. on June 30 at a rate of one share for every five shares held. Hertz Rental Car Holding Co. Inc. has changed its name to Hertz Global Holdings Inc. and begins trading today on the NYSE under the symbol HTZ.
The shares of the former Hertz Global Holdings, now known as Herc Holdings Inc. were adjusted for a 1-for-15 reverse stock split that was implemented immediately after the separation. Herc Holdings shares now represent ownership of the equipment rental business, which will operate through Herc Rentals on a stand-alone basis.
No fractional shares will be issued in connection with any of the transactions.
“We are thrilled to begin the next chapter in the history of our company,” said Larry Silber, president and CEO. “We are strategically positioned to generate above-market growth with significant opportunities for operational and financial improvement. As an independent company, Herc Rentals now has the financial and operational flexibility to pursue strategies that are specific to the equipment rental business.
“With focused resources, industry experience across the leadership team, premium products and services across a broad array of industries and end-user markets, and the support of our dedicated employees, we are positioned to provide even better service and overall value for our customers and to bring enhanced value to our shareholders.”
Silber’s experienced leadership team includes Bruce Dressel, senior vice president and chief operating officer; Barbara Brasier, senior vice president and chief financial officer; Chris Cunningham, senior vice president and chief human resources officer; Rich Marani, senior vice president and chief information officer; and Maryann Waryjas, senior vice president, chief legal officer and secretary.
“We will continue to expand our operations and to invest in all areas of our business, including new product lines such as ProContractor Tools and ProTruck line of commercial vehicles to complement our large selection of premium general equipment products,” added Silber. “In addition, our new ProSolutions business provides specialty equipment, technical expertise, and full-service, onsite support to solve our customers’ toughest challenges. We are also advancing processes and tools designed to drive continuous improvement across our company and to provide a higher level of service for our customers. Most notably, our enterprise-wide ‘Herc Way’ operating model ensures a consistent branch-to-branch approach to managing, servicing and repairing our fleet and rapidly gets equipment ready to rent, which will greatly improve our opportunities to serve more customers.”
Silber added that on the first day as an independent company, Herc Rentals is launching its new website and mobile app.
Based in Bonita Springs, Fla., Herc Rentals is No. 3 on the RER 100.