Necso Holdings, Inc. has announced the acquisition of Custom Truck One Source for a purchase price of $1.475 billion. Both companies provide specialized truck and heavy equipment (sales and rental), as well as aftermarket parts and service.
The companies are believed to offer a number of complementary lines. With reduction in redundancies, the combination of the two companies should lead to significant cost saving and other benefits.
Custom Truck One Source offers a number of service truck lines including, rail, telecom, and utilities.
"With enhanced scale, a broader set of capabilities and vastly improved financial flexibility, we believe the new company will be distinctively well-positioned to take advantage of the anticipated growth in critical U.S. infrastructure efforts in energy, telecom and rail over the near term and beyond," said Mark Ein, Chairman & CEO of Capitol and Vice Chairman of Nesco.
"We are excited to bring together our complementary companies to provide a full range of solutions to our customers," said Fred Ross, Chief Executive Officer of CTOS. "I want to thank our dedicated employees for all that they do each day. 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. We look forward to working together with the Nesco team to realize substantial synergies that will create meaningful value for all our stakeholders."
The transaction is complex, and financing involves several players. The NESCO Board of Directors unanimously approved the acquisition, and subject to shareholder approval and conditions the acquisition should close in the first quarter of 2021.