Nesco acquires Truck Utilities
US based utility equipment rental group Nesco Holdings is to acquire boom truck and aerial device/bucket truck sales and rental company Truck Utilities for a transaction value of $42.2 million.
Family owned Truck Utilities is based in St Paul Minnesota, with branches in Fargo, North Dakota and Kansas City. Established more than 50 years ago, its fleet includes 132 units with an average age of 2.3 years, and original equipment cost of $44 million. While the deal is subject to approvals, it is expected to complete next week.
The $42.2 million price remains subject to adjustment based on the finalisation of Truck Utilities' financials as of the end of September and certain capital expenditures to support fleet additions as well as other customary adjustments. Nesco plans to fund the transaction by accessing it's $350 million asset based credit facility.
Nesco chief executive Lee Jacobson said: "We have known and interacted with Truck Utilities and its president, Craig Capeder, for over a decade. Nesco and Truck Utilities share a common commitment to providing customers best-in-class specialty equipment, responsiveness and world-class service in the markets we serve. This transaction will provide our combined customer base with access to a young, growing fleet of specialty equipment, parts and accessories, in addition to enhanced upfit capabilities and an expanded services radius."
Craig Capeder of Truck Utilities added: "Nesco and Truck Utilities are complementary businesses with compelling synergies. Nesco is great partner, one with the resources to further strengthen our position in the markets we serve. We are excited by the opportunities for growth that lay ahead."
Nesco runs a rental fleet of around 4,000 units including aerial devices, cranes and digger derricks, it has been on the acquisition trail the past few years after it was acquired by Energy Capital Partners from Platinum Equity in 2014. Early this year the business was merged with Capital Investment Corp and floated on the stock exchange.