NEW YORK - Republic Industries Inc. could split into two companies as early as next year - one for auto retailing and the other for waste management and electronic security, according to a Friday, June 20, report by the Bloomberg News Service.
Republic Chairman H. Wayne Huizenga said Wall Street analysts told Republic it could be worth more by splitting into two companies once its auto retailing business is better established, according to Bloomberg News Service.
'We're not against doing that,' Huizenga said. 'I don't think we'd do that for another year or two.'
Waste management and security will account for about $1 billion of Republic's expected $10 billion in revenue this year, the story said.
A disadvantage of the split would be the loss of cash that waste and security generate to help expand the auto-related businesses. The cash could help cushion Republic from a recession that would hurt new-car sales, Huizenga said.