Hertz Spins Off Equipment Rental Unit

Car rental giant Hertz Corp. is turning its $1.5 billion equipment rental business into a separate, publicly traded company.

Hertz says it will net $2.5 billion in the deal. It plans to use the proceeds to pay down debt and help fund an expanded $1 billion stock buyback.

The spun-off company, Hertz Equipment Rental Corp., operates more than 300 outlets in North America, Europe, China and Saudi Arabia. It rents trucks, trailers, forklifts, earthmoving equipment, large air compressors, power generators and entertainment lighting equipment.