Hertz Global Holdings Inc. said it will spin off its equipment-leasing division to focus on renting cars, a move analysts have pushed for since Hertz went public in 2006.

Hertz will separate into two publicly traded companies, with Hertz comprising car rentals and the Donlen fleet leasing business, and the other containing equipment rental operations, the Park Ridge, New Jersey-based company said today in a statement. Hertz will get cash proceeds of about $2.5 billion from the spinoff to pay down debt and support a new $1 billion share buyback. The spun-off company will be called Hertz Equipment Rental Corp., or HERC.

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