Hertz to spin off equipment rental business for $2.5 bln

March 18 Tue Mar 18, 2014 6:13am EDT

March 18 (Reuters) - Car rental company Hertz Global Holdings Inc said it would spin off its equipment rental business for $2.5 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.

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