Hertz to Relocate Base to Estero, FL

Zacks

The Hertz Corporation, a subsidiary of Hertz Global Holdings Inc. (HTZ), revealed the construction details of its new global headquarters being constructed at Estero, Florida. Located at the US Route 41 and Williams Road junction, the new headquarter building will enable the company to unite the workforce of its Hertz, Dollar and Thrifty brands, combining operations under one roof.

The company had announced its intention to relocate its headquarters to Estero in May 2013, subsequent to the acquisition of Tulsa, OK-based Dollar Thrifty Automotive Group in Nov 2012. To facilitate a smooth relocation, the company temporarily moved its headquarters to Naples, Fla., in Oct 2013.

Through the integration of the corporate offices of the two companies, Hertz expects to achieve better efficiencies and cost synergies. Further, the new headquarters will help in the economic development of Southwest Florida in the long term. The building will provide 700 new jobs to the region, of which, about 400 people will be hired locally while the remaining 300 positions will be occupied by relocating Hertz employees from across the U.S.

The company highlighted that the design of its Estero head office building has attained LEED certification and will symbolize the company’s global rebranding initiatives that include reducing environmental hazards through efficiency improvements, resource management and renewable energy production. Further, the company expects to achieve LEED Gold certification for the design, emphasizing on energy-efficient lighting and equipment, and recycled building materials and finishes, to the installation of solar panels and water-saving fixtures.

Additionally, the company has worked with Estero community groups incorporating Tuscan and Mediterranean elements in the construction, some of which include plantings, pavers and security features.

Recently, Hertz posted better-than-expected third-quarter 2013 results, with adjusted earnings coming in at 73 cents per share, surpassing the Zacks Consensus Estimate by a couple of cents. The upbeat performance was backed by robust sales in its four principal businesses including U.S. off-airport car rental, Donlen, worldwide equipment rental and Dollar Thrifty, giving it an incentive to expand its car rental business.

This leading airport car rental brand in the U.S. with presence at 120 major airports in Europe currently holds a Zacks Rank #5 (Strong Sell). However, other well-placed stocks in the related industry include Command Center Inc. (CCNI), SouFun Holdings Ltd. (SFUN) and Furmanite Corp. (FRM). While Command Center and SouFun Holdings have a Zacks Rank #1 (Strong Buy), Furmanite Corporation has a Zacks Rank #2 (Buy).

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