Herc Rentals Explained

Herc Rentals
Type:Public
Industry:Equipment rental
Predecessor:The Hertz Corporation
Hq Location:Bonita Springs, Florida
Key People:Lawrence H. Silber (CEO and president)
Revenue:$3.2 billion
Revenue Year:2023
Num Employees:7,200
Num Employees Year:2023
Parent:Herc Holdings
Footnotes:[1] [2]

Herc Rentals is an equipment rental company, owned by Herc Holdings. It was formerly a subsidiary of The Hertz Corporation before being spun-off as a separate company in 2016. The company provides rentals of heavy equipment,[3] tools, power generators and pumps,[4] as well as sales of used equipment.[5]

It primarily serves companies in the construction, manufacturing, energy, civil infrastructure, agriculture, and entertainment industries.[6] [7] [8]

History

Early history

The company was founded in 1965 as a subsidiary of The Hertz Corporation.[9] It was originally named Hertz Equipment Rental Corporation (HERC). It was the second largest equipment rental company as of 1994.[10] Ford Motor Company considered acquiring HERC in 2002 but opted not to.[11]

In 2013, HERC's headquarters were moved from Park Ridge, New Jersey to Estero, Florida.[12] [13] The company generated over $1.5 billion in revenue in 2013, which was 14% of Hertz's total revenue.[14] Its annual revenue had increased to $1.7 billion by 2015.

Spin-off and recent history

In 2014, it was announced that Hertz Global planned to spin-off HERC as a separate publicly traded company.[15] [16] [17] The spin-off raised $2 billion for Hertz to reduce its own debt.[18] On July 1, 2016, Herc Rentals Inc. became an independently traded company (NYSE: $HRI).[19] It is currently owned by Herc Holdings.

Lawrence Silber became head of the company in 2015 and led it during the transition, becoming CEO and president after the spinoff.[20] The company was renamed Herc Rentals, based on the acronym for its previous name.[21]

Silber instituted a number of changes to the company and its corporate culture,[22] including hiring a new executive team, opening new branches,[23] and increasing the company's salesforce by 50%. He also diversified the company's revenues with the introduction of new products such as power tools, climate control, power generators,[24] commercial vehicles, and other specialty equipment.[25]

Between 2016 and 2020, the company spent $1.8 billion into expanding its rental fleet. The company invested between $525 and $575 million into its rental fleet in 2021,[26] and over $1 billion in 2023.[27] During this time, the company's revenue and earnings have increased. Its yearly earnings increased by 28% in 2021, and by 35% in 2022. The company continued to grow in 2023, when its revenues increased by 18%.[28]

After spinning off, Herc Rentals has acquired a number of other companies,[29] including CBS Rentals,[30] All-Star Rents,[31] Dwight Crane,[32] Reliable Equipment,[33] All Reach,[34] and Champion Rentals.[35]

It is currently one of the largest equipment rental companies in the world and operates in the United States and Canada.[36]

Notes and References

  1. Web site: Herc Holdings. Fortune.
  2. Web site: Herc Holdings Reports Strong Full Year 2023. hercrentals.com.
  3. Book: McManus . John . Service Operations Management: A Strategic Perspective . Winroth . Mats . Angelis . Jannis . 2019-10-12 . Bloomsbury Publishing . 978-1-137-60923-6 . 242–244 . en.
  4. Web site: 2014-03-18 . Hertz spinning off its equipment rental business - CBS News . 2024-04-11 . www.cbsnews.com . en-US.
  5. Book: Hoover's Handbook of American Business 2005 . December 2004 . Hoover's, Incorporated . 978-1-57311-101-0 . 2 . en.
  6. Web site: Bomey . Nathan . Hertz split official: Equipment, car rental parting . 2024-04-11 . USA TODAY . en-US.
  7. Web site: Hertz announces equipment hire spin-off . 2024-04-11 . www.ft.com.
  8. Web site: 2017-01-06 . The other Hertz . 2024-04-11 . Business Observer . en.
  9. Book: Pasiuk . Laurie . Vault Guide to the Top Transportation Industry Employers . Vault (Firm) . 2006 . Vault Inc. . 978-1-58131-385-7 . 70 . en.
  10. Book: Encyclopedia of American Industries . 1994 . Gale Research . 978-0-7876-9062-5 . 1145 . en.
  11. Book: Reidy, R. . Profile of the International Pump Industry - Market Prospects to 2007 . 2002-12-13 . Elsevier . 978-0-08-094924-6 . 7 . en.
  12. Web site: Pizzutillo . Rich . 2018-03-20 . New name, new vision, new products are getting Herc Rentals back on track . 2024-04-11 . ROI-NJ . en-US.
  13. Web site: Layden . Laura . Herc finds its own way as a stand-alone company . 2024-04-11 . Naples Daily News . en-US.
  14. Web site: 2014-03-18 . Hertz to spin off equipment rental business for $2.5 billion . 2024-04-11 . CNBC . en.
  15. Web site: 2014-03-19 . Hertz to spin off gear-rental arm . 2024-04-11 . arkansasonline.
  16. Web site: Hertz close to $4.5bn equipment rentals spin-off . 2024-04-11 . www.ft.com.
  17. News: Raghavan . Mridula . March 18, 2014 . Hertz to raise $2.5 billion through equipment business spinoff . Reuters . 2024–03–06.
  18. Web site: Hertz spins off equipment rental as Herc . 2024-04-11 . www.naplesnews.com . en.
  19. Web site: 2016-07-01 . Hertz spins off equipment arm . 2024-04-11 . Business Observer . en.
  20. News: Hufford . Austen . Hertz Details Equipment Company Spinoff . 2024-04-11 . WSJ.
  21. Web site: Larry Silber, CEO of Herc Rentals, Sees New Opportunities . 2024-04-11 . ENR.
  22. Web site: Pizzutillo . Rich . 2018-03-20 . Herc Rentals has no fear of promoting union workers to management roles . 2024-04-11 . ROI-NJ.
  23. Web site: Layden . Laura . September 22, 2021 . Bonita-based Herc announces ambitious three-year plan for growth . 2024-04-11 . The News-Press.
  24. Web site: Layden . Laura . Bonita-based rental company Herc Holdings posts record results . 2024-04-11 . The News-Press.
  25. Web site: Hertz Equipment Rental Spin-off Creates Herc Rentals . 2024-04-11 . UI.
  26. Web site: Layden . Laura . Herc narrows losses, completes last step in separation from Hertz. 2024-04-11 . Naples Daily News.
  27. Web site: 2023-09-07 . Top 10 US-based equipment rental companies . 2024-04-11 . IRN.
  28. Web site: 2023-10-30 . U.S. rental giants seeing record-breaking growth . 2024-04-11 . RN.
  29. Web site: Layden . Laura . Bonita Springs-based Herc reports record revenues, profits for 2021 .
  30. Web site: Layden . Laura . Bonita-based Herc Holdings eyes growth with acquisition of Texas company .
  31. Web site: Layden . Laura . No end in sight: Herc's growth story continues with record revenue, profits in second quarter .
  32. Web site: Layden . Laura . Bonita Springs-based Herc Holdings announces the completion of another acquisition .
  33. Web site: 2021-11-02 . Equipment giant makes acquisition, expands in New England .
  34. Web site: Hertz Buys All Reach .
  35. Web site: Layden . Laura . Herc Holdings acquires Houston-based rental equipment business .
  36. Web site: Hertz to spin-off rental business in $2.5bn deal . 2024-04-11 . Financier Worldwide . en-US.

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