Nesco Holdings, Inc., of Fort Wayne, Indiana, announced in December it has entered into a definitive agreement to acquire Custom Truck One Source (CTOS) for $1.475 billion.
CTOS, a 23-year TCIA Corporate Member company based in Lynchburg, Virginia, and Nesco are providers of specialized truck and heavy-equipment solutions including rental, sales and aftermarket parts and service. The combination is intended to create a one-stop-shop provider of specialty rental equipment serving growing infrastructure end-markets, including transmission and distribution, the 5G-revolution build-out and critical rail and other national infrastructure initiatives.
“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, CTOS chief executive officer.
“This combination will create new opportunities for our company, our employees and the customers we serve,” said Lee Jacobson, Nesco CEO.
Together, the combined company will operate on a national scale with more than 1,800 employees, 46 company-operated locations and a rental fleet that will be nearly double in size, with almost 9,000 units. It will be headquartered at the CTOS campus in Kansas City, Missouri, with significant operations maintained in Indiana.
Financing is being handled by Platinum Equity, LLC, current majority owner of CTOS, and Energy Capital Partners and Capitol Investment, which together own 70% of Nesco. The transaction is expected to close in the first quarter of 2021. Additional details, including plans for integrating the respective brands, will be addressed post close.