Boston, MA 06/03/2014 (wallstreetpr) – The car rental company Hertz Global Holdings, Inc. (NYSE:HTZ) has proposed various changes in its system aimed at improving performance in the company and maximizing shareholder value. One of the changes taking place in the company is the spinoff of some assets so that a streamlined business with reduced financial burden can be created. The spinoff of assets is also expected to support cost-savings in the company.
True to the streamlining spirit, Hertz announced the spinoff of Hertz Equipment Rental Corp. The division rents a range of equipment that include air compressors, aerial lifts, earthmoving equipment, forklifts, power generators, trucks, trailers and pumps. Hertz Equipment Rental also rents products used in the entertainment industry. The business is due for spin off in early 2015.
In the latest move, Hertz Global Holdings, Inc. (NYSE:HTZ) has announced a new leader for the spinoff oriented Hertz Equipment Rental Corp. The company has selected Brian P. MacDonald as the new CEO of the equipment rental unit. Mr. MacDonald will take over the leadership of the equipment rental business from Lois I. Boyd, whose retires but who will remain as an adviser to ensure smooth transition and growth of the spun off unit.
Mr. McDonald is no stranger to top executive leadership and his track record is the kind that keeps investors hopeful. Prior to joining Hertz Global Holdings, Inc. (NYSE:HTZ), he was the President and CEO of Sunoco Inc, a company that was acquired two years ago by Energy Transfer Partners in a $5.3 billion transaction. Mr. McDonald also served at Dell Inc in the capacity of vice president and chief financial officer. His stint at Dell Inc saw him lead various merger and acquisition deals in the computer company.
Sound Leadership And Business Plan
In spinning off the equipment rental business, Hertz Global Holdings, Inc. (NYSE:HTZ) is seeking nothing but maximization of shareholder value. The parent company expects to benefit from debt reduction and a boost to shares buyback program through the $2.5 billion spinoff transaction.
The spinoff targeted Hertz Equipment Rental Corp has 335 branches across the world.