Hertz Acquires Cinelease
- Hertz Entertainment Services Buys U.S. Market Leader in TV Lighting and Grip Rentals
- Cinelease will increase global equipment rental revenues at least 3% in 2012.
PARK RIDGE, N.J., Jan. 19, 2012 /PRNewswire/ -- Hertz Global Holdings, Inc. (NYSE: HTZ) announced that Hertz Entertainment Services has acquired Cinelease, U.S. market leader in lighting and grip rentals to the television industry, based in Los Angeles, California.
"With the acquisition of Cinelease, Hertz Entertainment Services becomes the leading provider of lighting and grip rentals to the U.S. television industry, which is one of the fastest growing segments of our economy," commented Mark P. Frissora, Hertz Chairman and Chief Executive Officer. "Cinelease aligns with Hertz's growth and diversification strategy to meet the equipment rental needs of a broad range of leading industries. The acquisition expands our footprint in another specialty rental market with higher revenue growth and margins, longer rentals and lower seasonal cyclicality. Cinelease will add at least 3% of incremental, inorganic revenue growth to our global equipment rental revenues in 2012, and is both accretive to earnings and cash flow-positive in year one. Additionally, Cinelease will accelerate the growth of our Entertainment Services business because Hertz is uniquely able to bundle a wide variety of products for film and television production companies, from lights, grip, generators, cranes and lifts to the widest selection of rental cars in the industry. Cinelease complements the earlier acquisitions of First Call and 24/7 which also provide rental equipment, including aerial and forklifts, to the entertainment industry."
Lighting and grip rental revenues generated by the U.S. television and motion picture industry are estimated at $600 million annually. It is anticipated that Cinelease will deliver approximately $50 million of new revenues during 2012 as the company is integrated into Hertz Entertainment Services.
Established in 1977 and headquartered in Los Angeles, Cinelease operates from seven locations in Atlanta, Austin, Charlotte, Chicago, Dallas, New Orleans, and Santa Fe. Cinelease is the largest set lighting and grip rental company in the US, offering the highest quality motion picture lighting and professional grip equipment available. Products available for rent include lighting, grip equipment, power distribution, trucks and expendables.
Hertz Equipment Rental Corporation – a wholly owned subsidiary of The Hertz Corporation since 1965 - operates one of the world's largest equipment rental businesses, offering a diverse line of equipment and tools for rent and sale. Products include aerial manlifts, air compressors and tools, earthmoving equipment and power generators, forklifts and material handling equipment, pumps, and trucks and trailers. Hertz Equipment also offers custom programs and equipment through its specialty service groups; Industrial Plant Services, Pump and Power Services, Aerial Services and Government Services. With approximately 325 locations in the United States, Canada, China and Europe, Hertz Equipment Rental offers daily, weekly, monthly and long-term rentals, tools and supplies, as well as new and used equipment for sale.
The Hertz Corporation is the world's largest general use car rental brand, operating from approximately 8,500 locations in approximately 150 countries worldwide. Hertz is the number one airport car rental brand in the U.S. and at 94 major airports in Europe, operating both corporate and licensee locations in cities and airports in North America, Europe, Latin America, Asia, Australia and New Zealand. In addition, the Company has licensee locations in cities and airports in Africa and the Middle East. Product and service initiatives such as Hertz Gold Plus Rewards®, NeverLost® customized, onboard navigation systems, SIRIUS XM Satellite Radio, and unique cars and SUVs offered through the company's Prestige, Adrenaline and Green Traveler Collections, set Hertz apart from the competition. Hertz also owns Donlen Corporation, based in Northbrook, Illinois, which is a leader in fleet leasing and management services.
For more information about Hertz Equipment, visit the company online at www.hertzequip.com.
SOURCE Hertz Global Holdings, Inc.
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