Hertz to spin off equipment rental business for 1.50 billion pound
(Reuters) - Car rental company Hertz Global Holdings Inc (NYS:HTZ) said it would spin off its equipment rental business for $2.5 billion (£1.50 billion).
The division, Hertz Equipment Rental Corp, provides a wide range of rental equipment from small tools to heavy earthmoving equipment.
Hertz said part of the proceeds would be used to fund a newly approved $1 billion share repurchase program.
The company said it expects the separation, which will be through a tax-free distribution to shareholders, to close by early 2015.
(Reporting by Mridhula Raghavan in Bangalore; Editing by Sriraj Kalluvila)