INTERVIEW
44
access
INTERNATIONAL
JANUARY-FEBRUARY 2014
where it currently has around five locations – as
well as Saudi Arabia, with local partner Dayim
Holdings, where it recently opened a second
location.
International ideas
However, it is Europe where the main
international business is, and where HERC
has been weathering a long downturn, which
has led the company to scale back its Spanish
operation and focus on power rentals. In France
it operates a more conventional general rentals
operation with more than 60 locations.
Ms Boyd says the European operation “is
coming out of a downturn.We have stabilised
that business and projects are in play to
optimise the business.
“There’s a positive explosion of energy going
on in Europe. Once we get our business to the
level we set in the plan, which I think is coming
soon, we’ll look at other opportunities…I think
you’ll be reading news from us, maybe even
during next year [2014] and 2015, on things
that are going on in Europe.”
Of course, for HERC, the choice in entering
international markets is whether to do it itself
– corporately – or through a franchise partner,
in some cases existing car franchise holders.
So, for example, new HERC operations
in Mongolia and Chile – both areas with
expanding mining and natural resource sectors
– are being undertaken through franchises.
Franchises, of course, make it possible to enter a
market without the capital investment required
of a corporate initiative.
Wouldn’t Australia be a natural candidate?
“Australia is very saturated”, she explains, “We
did look but the EBITDA multiples they
wanted [for acquisitions] were pretty high, so
that didn’t make financial sense.We looked at
greenfield as well, but the timing isn’t right, as
it’s into a bit of a downturn.”
India and South Africa remain on HERC’s
‘potential’ list, but China and Saudi Arabia are
the two markets where it has decided to go on
its own. “We see that the China market will
be expanding on an ongoing basis…we are
watching China carefully, and we’re looking at
multiple growth strategies.We are doing a lot
to diversify the customer base there.”
With international revenues still representing
only 10% of revenues,
AI
asks if a target of 25%
within five years would be realistic. “We want
[international] to be more,” says Ms Boyd in
response, “Franchises don’t really roll up to us,
that kind of figure [the 25%] would take a lot
of corporate activity. ”
Of course, the question for any HERC
president is whether Hertz Corp is committed
to owning it? Most recent speculation about a
HERC sell-off was sparked in late December
by a Financial Times story. Ms Boyd, speaking
before the latest bout of speculation, opts not to
add to the “constant chatter”.
AI
A HERC aerial platform
being used at the
Chongqing International
Expo Center in China.
Hertz Equipment Rental’s Energy
Services division launches new
facility in Bordeaux France
