Nesco Holdings to acquire Custom Truck One Source

Nesco Holdings Inc., Fort Wayne, Indiana, announced Dec. 3 it has entered into a definitive agreement to acquire Kansas City-based Custom Truck One Source (CTOS) for a purchase price of $1.48 billion. Nesco and CTOS are providers of specialized truck and heavy equipment solutions including rental, sales and aftermarket parts and service for industries such as building supply, construction, waste, forestry and more.

According to the companies, the acquisition will enhance their ability to provide specialty rental equipment in highly attractive and growing end markets. With complementary business lines, customer bases and capabilities, the combination is expected to yield benefits from increased scale, breadth of product and service offerings and expanded geographic coverage, the companies state.

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

"We are excited to bring together our complementary companies to provide a full range of solutions to our customers," Fred Ross, CEO of CTOS, says. "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."

"This combination will create new opportunities for our company, our employees and the customers we serve," Lee Jacobson, CEO of Nesco, says. "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."