Herc Sells Cinelease, Its Film Production Division, to Private Investment Company Zello
Herc Rentals has sold its film and television production equipment rental division Cinelease to Zello, a private investment firm based in Burbank, Calif. Cinelease is based in Los Angeles, but has locations in several major production hubs in the United States.
Cinelease was founded in 1977, but has been owned by Herc for the past six years. The sale occurs during a period in which major Hollywood studies have reduced spending on film and television production. Cinelease will continue to operate independently as a privately owned company and be led by Mark Lamberton, Chris Rogers and Gannon Murphy, veterans of the studio equipment rental business.
Cinelease offers a robust inventory of lighting and grip equipment and serves as the professional manager of studio facilities owned by leading real estate investors. With operations spanning every major production hub in the U.S. and Canada, Cinelease supports thousands of film, television, and commercial productions annually through its integrated studio and equipment offerings.
“This marks an exciting new chapter for Cinelease,” said Mark Lamberton, president of Cinelease. “We’re a company built on service, relationships, and delivering when it counts—led by people with a deep understanding of what it takes to make it happen. Zello brings deep respect for our foundation and the operational scale to help us go even further for the entertainment community. Together, we’ll keep raising the bar for production support across North America.”
Herc said in a statement: "Herc Rentals first announced its intent to explore strategic alternatives for Cinelease in late 2023 as the film and studio entertainment industry had shifted to a studio-centric model, where competitiveness increasingly depends on investing in a large network of fully managed studios. This business model is a departure from Herc Rentals’ stated growth strategy. Zello brings deep operational experience in the lighting and grip space and a strong commitment to supporting Cinelease’s success as a standalone company. We are confident that this transition positions both Herc Rentals and Cinelease for continued success on our respective strategic paths."
Zello was advised by Proskauer Rose LLP as legal counsel, EY as accounting advisor, and American Discovery Capital as financial advisor. Financing for the transaction was provided by MidCap Financial, a leading middle-market lender owned and managed by Apollo Global Management. Herc was advised by Sidley Austin LLP on legal matters and Goldman Sachs on financial matters. MidCap Financial was advised by Paul Hastings LLP on legal matters.
About the Author
Michael Roth
Editor
Michael Roth has covered the equipment rental industry full time for RER since 1989 and has served as the magazine’s editor in chief since 1994. He has nearly 30 years experience as a professional journalist. Roth has visited hundreds of rental centers and industry manufacturers, written hundreds of feature stories for RER and thousands of news stories for the magazine and its electronic newsletter RER Reports. Roth has interviewed leading executives for most of the industry’s largest rental companies and manufacturers as well as hundreds of smaller independent companies. He has visited with and reported on rental companies and manufacturers in Europe, Central America and Asia as well as Mexico, Canada and the United States. Roth was co-founder of RER Reports, the industry’s first weekly newsletter, which began as a fax newsletter in 1996, and later became an online newsletter. Roth has spoken at conventions sponsored by the American Rental Association, Associated Equipment Distributors, California Rental Association and other industry events and has spoken before industry groups in several countries. He lives and works in Los Angeles when he’s not traveling to cover industry events.