Hertz Corporation is preparing for an initial public offering of its stock, just seven months after a private equity group bought the company from Ford, according to the Wall Street Journal (WSJ).
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Ford had been considering an IPO of its own, but sold the group to Clayton Dubilier & Rice, The Carlyle Group and Merrill Lynch Global Private Equity who paid around $US15bn, including the assumption of debt. The sale was announced in September 2005 and completed in December 2005.
The value of the offering is not yet known, although according to one of the WSJ’s sources, the IPO is expected to be one of the largest this year. Registration could come within days.
On Tuesday Hertz announced the appointment of Mark Frissora as CEO. Frissora is well-known in the automotive industry as CEO of Tenneco. He leaves there on 19 July to take up the Hertz post.
Frissora succeeds Craig Koch, who will become chairman of Hertz’s board.
In a statement Hertz noted that Frissora is a proven leader of a Fortune 500 company, and that while at Tenneco he earned two Automotive News Industry Shareholder Awards for delivering the highest shareholder returns of any global supplier.
