The board of directors of Hertz Global Holdings formally approved the previously announced separation of its car rental and equipment rental businesses.

The separation is expected to be tax-free to Hertz Global Holdings stockholders for U.S. federal income tax purposes.  A Form 10 registration statement detailing the transaction is on file with the U.S. Securities and Exchange Commission.

Emerging from the transaction will be two companies: a new Hertz Global Holdings, which will consist of the worldwide rental car business and leasing business of Donlen Corporation, and Herc Holdings, which will consist of the worldwide equipment rental business.

“The creation of these two public companies enables each to focus on their respective core businesses, thereby increasing the opportunity for both to create optimal shareholder value,” said John Tague, president and CEO of Hertz Global Holdings, who will continue in the same role at the new Hertz Global Holdings following the transaction.

On July 1 the new Hertz Global Holdings will begin regular-way trading on the New York Stock Exchange (NYSE) under the existing HTZ symbol, while Herc Holdings will begin regular-way trading on the NYSE under the symbol HRI.

In a separate announcement, expected members of the board of directors for Herc Holdings were named.  That board will be led by non-executive chairman Herbert Henkel. Larry Silber, president and CEO of the equipment rental subsidiary for the current Hertz Global Holdings, will be president and CEO for Herc Holdings.

“As a leader in the equipment rental industry, our separation as an independent company enables us to focus on opportunities to expand our business and enhance profitability,” Silber said.  “We are already making good progress and continue to execute a solid business plan and strategy designed to enhance customer service, expand and diversify our revenues and improve operating efficiencies to generate value for our shareholders.”