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Herc Rentals

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American equipment rental company
Herc Rentals
Company typePublic
Traded asNYSE: HRI
IndustryEquipment rental
PredecessorThe Hertz Corporation
Founded1965; 59 years ago (1965)
HeadquartersBonita Springs, Florida
Key peopleLawrence H. Silber (CEO and president)
Revenue$3.2 billion (2023)
Number of employees7,200 (2023)
ParentHerc Holdings
Websitewww.hercrentals.com
Footnotes / references

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, tools, power generators and pumps, as well as sales of used equipment.

It primarily serves companies in the construction, manufacturing, energy, civil infrastructure, agriculture, and entertainment industries.

History

Early history

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

In 2013, HERC's headquarters were moved from Park Ridge, New Jersey to Estero, Florida. The company generated over $1.5 billion in revenue in 2013, which was 14% of Hertz's total revenue. 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. The spin-off raised $2 billion for Hertz to reduce its own debt. On July 1, 2016, Herc Rentals Inc. became an independently traded company (NYSE: $HRI). 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. The company was renamed Herc Rentals, based on the acronym for its previous name.

Silber instituted a number of changes to the company and its corporate culture, including hiring a new executive team, opening new branches, 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, commercial vehicles, and other specialty equipment.

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, and over $1 billion in 2023. 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%.

After spinning off, Herc Rentals has acquired a number of other companies, including CBS Rentals, All-Star Rents, Dwight Crane, Reliable Equipment, All Reach, and Champion Rentals.

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

References

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