Custom Truck One Source acquired by Nesco Holdings

Nesco Holdings entered into an agreement to acquire Custom Truck One Source (CTOS) for a purchase price of $1.475 billion.

Nesco and CTOS provide specialized truck and heavy equipment solutions, including rental, sales and aftermarket parts and service. CTOS’ propane offerings include bobtail rentals, service trucks and other equipment solutions.

The transaction is expected to close in the first quarter of 2021.

“Looking ahead, as a combined company, we will be very well positioned to capitalize on a broad range of growth opportunities and better serve our customers’ specialty rental equipment needs on a national basis,” says Fred Ross, CEO of CTOS. “We look forward to working together with the Nesco team to realize substantial synergies that will create meaningful value for all our stakeholders.”

The combined company will operate on a national scale with over 1,800 employees, 46 locations and a rental fleet that will be nearly double in size to almost 9,000 units and more than $1.3 billion in combined original equipment cost.

Ross is expected to serve as CEO of the combined business. The company will be headquartered at the CTOS campus in Kansas City, Missouri, with significant operations maintained in Indiana.

“This combination will create new opportunities for our company, our employees and the customers we serve,” says Lee Jacobson, CEO of Nesco. “Nesco and CTOS are a perfect fit and together will be well positioned to pursue numerous opportunities in the rapidly growing specialty rental segment. We couldn’t have reached this milestone without the hard work of our team, and we look forward to working together with CTOS to ensure a seamless transition.”

Platinum Equity, a financial sponsor in the specialty rental equipment industry, committed to invest over $850 million in Nesco and will hold a majority interest in the combined company.

Nesco’s lead investors, Energy Capital Partners and Capitol Investment, and existing CTOS lead investor, Blackstone, will remain ongoing shareholders in partnership with Platinum Equity.

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