KANSAS CITY, Mo., April 1, 2021 /PRNewswire/ -- Nesco
Holdings, Inc. (NYSE: NSCO) ("Nesco"), which has been renamed as
Custom Truck One Source, Inc. (the "Company") effective today, in
partnership with an affiliate of Platinum Equity, LLC ("Platinum"),
today announced the closing of the previously announced transaction
to acquire Custom Truck One Source, L.P. ("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 Company is headquartered in Kansas
City, Missouri and led by CTOS co-founder and CEO
Fred Ross. The combination creates a
leading, one-stop-shop provider of specialty rental equipment,
serving highly attractive and growing infrastructure end markets,
including the transmission and distribution energy grid, the 5G
revolution build-out and critical rail and other national
infrastructure initiatives.
In connection with the Acquisition, the Company has changed its
name to Custom Truck One Source, Inc. Its shares of common stock
will trade on the NYSE under the ticker symbol "CTOS" beginning on
April 5, 2021, and its existing
warrants will trade on the NYSE under the ticker symbol
"CTOS.WS". The Company's leadership team also includes
Ryan McMonagle as President and
Chief Operating Officer and Brad
Meader as Chief Financial Officer, both of whom previously
held those positions at CTOS.
"We are truly excited about bringing these two great companies
together," said Mr. Ross. "We believe that our stockholders
will realize the benefits of the combination as we create one of
the largest specialty rental fleets in the country. Moreover,
we are excited to bring a larger platform to our customers and to
continue to provide them with the outstanding customer service they
have come to expect from both of us."
In connection with the Acquisition, Platinum has made an
investment and became the majority stockholder of the Company while
existing CTOS equity holders, including certain funds managed by
the Blackstone Group ("Blackstone"), the majority owner of CTOS
prior to the Acquisition, and certain members of the CTOS
management team, became minority stockholders of the Company.
Energy Capital Partners ("ECP") and Capitol Investment ("Capitol"),
who together owned approximately 70% of Nesco's outstanding common
stock prior to the Acquisition, retained their entire ownership
positions in the Company.
"We look forward to working with the management team to bring
these companies together and to putting our playbook in action to
create significant shareholder value for many years to come," said
Platinum Equity Partner Louis Samson. "We have a lot of experience
in this industry and are excited about the opportunities
ahead."
"We are thrilled to consummate this merger which creates a very
unique, valuable, well-capitalized company that is a terrific
business and now also will benefit from, and play an important role
in, the likely large investment about to be made in our nation's
electrical, telecom and rail infrastructure," said Mark Ein, Capitol's CEO and Nesco's
Vice-Chairman who will join the CTOS board.
FORWARD-LOOKING STATEMENTS
This press release includes "forward-looking statements" within
the meaning of the "safe harbor" provisions of the United States
Private Securities Litigation Reform Act of 1995 and within the
meaning of Section 21E of the Securities Exchange Act of 1934, as
amended, and Section 27A of the Securities Act of 1933, as amended.
When used in press release, the words "anticipates," "believes,"
"will," "expects," "look forward" and variations of these words or
similar expressions (or the negative versions of such words or
expressions) are intended to identify forward-looking statements.
These forward-looking statements are not guarantees of future
performance, conditions or results, and involve a number of known
and unknown risks, uncertainties, assumptions and other important
factors, many of which are outside the Company's management's
control, that could cause actual results or outcomes to differ
materially from those discussed in this press release. Important
factors, among others, that may affect actual results or outcomes
include: the impact of the COVID-19 pandemic on the Company's
business and operations as well as the overall economy; the
Company's ability to integrate the Nesco and CTOS businesses and
achieve the expected benefits of the Acquisition in a timely
manner; unanticipated costs related to the integration; and general
economic and market conditions impacting demand for the Company's
services. For a more complete description of these and other
possible risks and uncertainties, please refer to the Company's
Annual Report on Form 10-K for the year ended December 31, 2020, filed with the Securities and
Exchange Commission on March 9, 2021,
as updated by the Company's subsequent quarterly reports on Form
10-Q.
ABOUT THE COMPANY
The Company is a leading provider of specialized truck and heavy
equipment solutions to the utility, telecommunications, rail and
infrastructure markets in North
America. The Company's solutions include rentals, sales,
aftermarket parts, tools, accessories and service, equipment
production, manufacturing, financing solutions, and asset
disposal. With vast equipment breadth, the Company's team of
experts service its customers across an integrated network of
locations across North America.
For more information, please visit customtruck.com.
INVESTOR CONTACT
Brad Meader, Chief Financial
Officer
800.252.0043
investors@customtruck.com
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SOURCE Custom Truck One Source, Inc.