Nesco Holdings To Acquire Custom Truck One Source For $1.475 Bln – Quick Facts

Nesco Holdings, Inc. (NSCO) announced Thursday that it has entered into a definitive agreement to acquire Custom Truck One Source (CTOS) for a purchase price of $1.475 billion. Nesco and CTOS are leading providers of specialized truck and heavy equipment solutions including rental, sales and aftermarket parts and service.

The combination will create a leading, one-stop-shop provider of specialty rental equipment serving highly attractive and growing infrastructure end-markets, including transmission and distribution, the 5G revolution build-out and critical rail and other national infrastructure initiatives.

With complementary business lines, customer bases and capabilities, the combination is expected to yield significant benefits from increased scale, breadth of product and service offerings and expanded geographic coverage.

Following closing, the combined company will have a more attractive financial profile with significantly reduced leverage and enhanced liquidity providing flexibility to address anticipated demand in the large and growing addressable market in which it operates.

In connection with the transaction, an affiliate of Platinum Equity, LLC has committed to invest over $850 million into Nesco in exchange for newly issued common stock at a price of $5.00 per share.

The combined company will be headquartered at the CTOS campus in Kansas City and Fred Ross, Chief Executive Officer of CTOS, is expected to serve as CEO of the combined business.

The transaction, unanimously approved by the Nesco Board of Directors, is expected to close in the first quarter of 2021, subject to shareholder approval and other customary conditions.

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